How to Create Liquidity Pools for Professional Market Makers?

1. Go to“ DODO Workshop” → “Market Maker Pool”

2. Market Maker Pool

Market Maker Pools on DODO Lite are essentially private pools on DODO Web, where only the pool creator can provide liquidity for this pool, and the pool parameters can be modified at any time after creation

3. Configure the Pool Parameters

• Enter the amount of tokens you would like to supply as buy and sell side liquidity. Currently “Standard” and “Single-Token” pool creations are supported for Market Maker Pools.

• The initial price of the token pair follows the market price by default. Unchecking the “Fixed ratio at current price” option will expose you to the risk of being arbitraged.

• There are three options for the fee rate:

  • 0.01%: suitable for stablecoin trading pairs, such as USDT/BUSD
  • 0.3%: suitable for mainstream assets, such as BTC/ETH
  • 1%: suitable for exotic token pairs

  Note: a low trading fee rate tends to attract more trading volume in the pool.

• There are three options for the Slippage Coefficient (k), and the value is set to 1 by default:

  • K = 0.5: suitable for most trading pairs
  • K = 0.01: suitable for trading pairs with low volatility, such as BUSD/USDT
  • K = 1: suitable for volatile assets

  Note: the smaller the slippage coefficient, the lower the slippage for traders, and the deeper the market depth. To learn more, watch our tutorial video on slippage coefficient on DODO.

  

4. Check Pool Details

Go to “My Pool List”, and click “Manage” to view the details of the pool, such as its trading volume, trading fee revenue, etc.

5. Risk Disclaimer

Liquidity mining is not risk-free, and there is always a possibility of loss. Please be careful when proceeding and make sure you understand the risks.