As a Liquidity Pool provider (LP), you contribute tokens to these pools and earn rewards in the form of transaction fees. With ShibaSwap’s streamlined and data-rich interface, creating your own liquidity pool is now easier than ever. This guide will walk you through the process.
Before diving in, understand the risks and rewards associated with liquidity pools. DeFi can be complex and volatile, so careful planning is essential.
◻️ Before you begin, ensure you have a compatible wallet (e.g., MetaMask, Trust Wallet) with some ETH and/or SHIB tokens for the liquidity pool.
◻️ Navigate to ShibaSwap on Shib.io and click the “Connect Wallet” button.
◻️ Select your preferred wallet and follow the on-screen instructions to authorize the connection.
◻️ Once your wallet is connected, locate the “Create Liquidity Pool” option on ShibaSwap.
◻️ Click on “Create Liquidity Pool” to begin the pool creation process. You should now see a screen similar to the first image provided.
◻️ On the “Create Liquidity Pool” page, you’ll see “Select Token Pair” with dropdown menus for each token.
◻️ ETH is selected by default. You must click the left arrow on the dropdown menu to choose a token pair.
◻️ Choose the tokens you want to pair (in the image it shows “ETH” and “SHIB”). These are the tokens that will be traded in your pool. Click the dropdown, and select the token you wish to choose.
◻️ Fee Tier: Select a fee tier which determines the fees collected for trading. 0.05% is selected by default. Choosing a larger fee tier can attract more volume, but be mindful of what the community is asking for.
◻️ Click “Next” to continue.
Now you’ll move to the “Fee & Price” section which will lead you to a page such as that in the second image. Here, you must determine the price range for the token pairing.
◻️ Full Range is selected by default.
◻️ Full Range: Lower risk and stable returns
◻️ Safe Range Medium: balanced risk and returns
◻️ Safe Range High Risk: High risk, better rewards
◻️ Custom: Pro Users: Set your own range
As a default, Shiba Inu Treat ($TREAT) is shown in the High Price and Low Price sections. This can be modified and should be modified to the token pair you have chosen. Set them using the – and + options on the right.
Click “Next” to continue.
Here you can deposit amounts. Ensure that ETH and SHIB are selected at the top.
◻️ Input values for ETH and SHIB. See what Balance Available is on your wallets before doing so.
◻️ Scroll down and check all of the values and gas fees shown at the bottom.
◻️ Confirm and Create Your Liquidity Pool Token
◻️ Click “Create LP Token” to finalize your setup.
◻️ Your wallet will prompt you to approve the transaction.
◻️ Carefully review all transaction details (token amounts, fees, etc.) before confirming.
Once confirmed, the blockchain will process the transaction, and your liquidity pool will be created!
◻️ Use ShibaSwap’s analytics dashboard to track your pool’s performance.
◻️ Monitor metrics such as APY, trading volume, and TVL to understand how well your pool is performing.
◻️ Consider adjusting your fee structure or token amounts based on market conditions and pool performance (this requires further research and understanding).
Congratulations! You have successfully created your own liquidity pool on ShibaSwap.
By contributing liquidity, you play a vital role in supporting the Shiba Inu ecosystem. Remember to always exercise caution, do your own research, and understand the risks associated with DeFi before investing.
