>>ION Mainnet launch EVENT 2 — Creating a liquidity pool 💧
Welcome to ION Finance! ⚡️
As part of the grand launch of our mainnet, ION Finance introduces an exciting opportunity to create your own 🤖 CPMM (Constant Product Market Maker) pool. This model, distinct from traditional trading platforms, operates through a liquidity pool instead of direct trades between buyers and sellers. Users contribute tokens to a pool, facilitating price stability and continuous 💧 liquidity.
To assist our users in leveraging this feature, we’ve developed a guide that provides step-by-step instructions on how to create a CPMM pool on ION Finance, empowering you to contribute to the liquidity of your choice and potentially earn rewards. By participating in this event, you become a vital part of our expanding ecosystem, improving the functionality and accessibility of the ION network.
Follow the steps below to create a CPMM pool on ION Finance.
1️⃣ >>Pool creation — After connecting your wallet, navigate to <<Earn>> and click on <<Creation+>> as shown below.
2️⃣ >>Pool Type — On this screen, you must select the Pool Type. For our mainnet launch event, only the CPMM Pool will be available, referred to on the ION platform as <<Pool>> (image below). Click <<Next>> 😁 to get started!
⚠️For the mainnet launch events just the CPMM pool will be available, on the ION platform simply called “Pool”
⚠️This type of pool is proper for the assets that have no direct correlation in price, one with another
3️⃣ >>Setting — On this screen you will be able to choose the base and quote tokens the input the incurring fees. Search the respective token by its name or input the token address.
a) Select base and Quote tokens — The Base Token (Token A) is the first one listed when you see a token pair. The second one is called the Quote Token (Token B), and it tells you how many you need to buy one Base Token.
b) Input fee rate — it is the amount that traders will pay to trade the pair, it is charged on each swap. Be aware that if the fee is too high the pool may experience low volume and consequently generate lower fees.
⚠️ Fee Tiers: Pool creators can choose from 3 fee tiers
0.01% — best for very stable assets (ex. USDT/BUSD)
0.3% — best for most pairs (ex. BTC/ETH)
1% — best for exotic pairs
4️⃣ >>Liquidity — In this screen, you need to decide the deposit amount to deposit into the liquidity pool. The deposit amount is the sum of Base and Quote tokens allocated for adding liquidity when the pool starts. This deposit proportion adjusts automatically, based on the prior settings. However, the pool creator has the option to adjust manually the amount of liquidity for both the Base and Quote tokens as needed. After adding liquidity by adding the tokens, click on <<Create Pool>> to proceed.
5️⃣ >>Preview pool and confirm — After setting the deposit amount, the pool creator can preview the pool. Simply tap <<Confirm>> and approve the transaction! You’ve successfully created a constant product market maker pool on ION Finance! 🙌
6️⃣ >>Pool investment — Now it is time to earn! Tap the <<Earn>> feature in order to display all the available created pools users can participate in. It is possible to find a specific pool by searching pool name, pool address, token name, or even token address. After finding the preferred pool, users can add liquidity by depositing tokens, and in return, 💰 earn amazing rewards.
🆘Need Help? If you encounter any issues or have questions during the process, reach out to ION Finance support through the official channels. It’s important to use ONLY official support to avoid scams or misinformation.
