Creating Pools

Constant Product Market Maker (CPMM)

XenDEX features a standard AMM program (CP-Swap) that supports Token-2022 assets, enabling permissionless pool creation. Anyone can set up a liquidity pool on the platform.

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Important Requirements for Pool Creation

1. SPL Tokens:

   • Ensure the freeze authority is disabled for all tokens.

2. Token-2022 Extensions:

   • Supported extensions include:

     • Transfer Fees

     • Metadata Pointer

     • Metadata

3. AMM ID:

   • Each new pool is assigned a unique AMM ID for identification.

4. Initial Liquidity Allocation:

   • A fraction of the initial liquidity is reserved in pool vaults to ensure the pool remains active. LP tokens can later be burned to reclaim underlying assets and trading fees.

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How to Create a Permissionless Pool

1. Access the Pool Creation Tool

   • Go to the Liquidity section on XenDEX. Click "Create Pool

2. Configure Pool Settings

   • Starting Price: Set the number of Quote Tokens needed to purchase 1 Base Token.

   • Initial Liquidity: Enter the amount for either the Base or Quote token, and the system will auto-calculate the other based on the starting price.

   • Ensure your wallet has sufficient funds for the initial liquidity. Click ‘Initialize Liquidity Pool’.

   Note: Once the pool is initialized, the starting price, liquidity, and start time cannot be modified.

3. Confirm and Approve the Transaction:

   • Approve the transaction in your wallet to:

     • Initialize the pool.

     • Add liquidity from your wallet.

4. Completion and AMM ID:

   • Once the transaction is confirmed, the pool will be created with a unique AMM ID and will launch at the selected start time.

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Helping Users Find Your Pool

1. Token Search:

   • Users can search for a token by mint address and add it to their personal list if it is not on the default token list.

2. AMM ID:

   • Share your unique AMM ID to help others locate the pool on the Liquidity page.

3. Monitor Your Pools:

   • Revisit the Pools page anytime to view and manage the pools you’ve created.

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Tips for a Successful Pool Creation

• Verify Token Details: Double-check token contracts to avoid creating pools with incorrect assets.

• Ensure Sufficient Funds: Make sure your wallet has enough tokens and XN to cover both initial liquidity and network fees.

• Set Realistic Starting Prices: Choose a starting price that reflects the market value of the tokens to attract liquidity and traders.