Create a AMM Pool
Last updated
Last updated
Permissionless pools allow anyone to create a liquidity pool on Cropper. Once a pool is created it will be immediately available for trading on Cropper's Swap interface. With Cropper's Serum integration, pool AMMs will be also then be able to place orders on the Serum order book and allow liquidity to be traded on any DEX.
If you're thinking about creating a pool on Cropper, we strongly recommend that you carefully read the entire guide below before moving to the next step.
Important must reads for all providers before creating a new pool:
All new LPs must be linked to a unique Serum Market ID. Please note that a single market ID can only be used once to create an LP on Cropper.
Once created, new LPs will be immediately tradable on Cropper's Swap feature.
LP AMMs will also interact with and place orders on the Serum order book of the market ID they are linked to. However, it's important to note that if total liquidity in the LP is below the equivalent of $10,000 USD at any given time, the AMM will pause placing orders until 1. Additional liquidity is added or 2. Token prices rise to meet the threshold.
Every new LP will have an associated AMM ID created. This AMM ID will be needed in order to create a farm on Cropper later.
Obtain a Serum Market ID
First, follow this guide to create and list a new market on Serum, make sure to record the market ID. Note that creating a new market on Serum can cost anywhere from 5 - 15 SOL.
Setting Minimum Order size and Tick Size
In general, more decimals in the Minimum Order Size and min Tick Size are better. However the market cannot have more than 6 decimals places for both of these two parameters combined.
We suggest that Min Tick Size should be a maximum of 0.1% of your intended starting price for the Base Token (price being the number of Quote Tokens needed to purchase 1 Base Token)
Minimum Order Size can follow with remaining available decimal places based on what's required for min Tick Size.
Once you've created the market on Serum, go to the Pools page on Cropper. Then, click on create a new liquidity pool in the upper right corner, and connect your wallet.
On the Create Pool page, input the market ID from Serum, then click 'Confirm'.
If an LP already exists on Cropper with the entered Serum market ID, the ID can not be used to create a new LP.
Starting Price and Initial Liquidity
Set the Base Token Starting Price - This is the number of Quote Tokens needed to purchase 1 Base Token.
Set Base and Quote Token Initial Liquidity - You can enter one side of initial liquidity and the other side will be calculated according to the Base Token starting price.
Allocate Funds for Initial Liquidity - Once you've confirmed you have adequate funds in your wallet for the initial liquidity, click 'Confirm and Initialize Liquidity Pool'.
After clicking confirm, you will need to approve THREE separate transactions in your wallet. These transactions:
Initialize the pool
Create the pool's AMM account and ID
And add the liquidity from your wallet.
If you do not see one of the transaction approvals appear, your wallet window may be hiding behind your main browser window.
If you fail to approve one of the three transactions, the pool creation will not complete unless you click confirm again and successfully re-approve all three transactions.
Once all three transactions are confirmed, the new LP will have been successfully created and you will be provided with your pool's new AMM ID.
You can return to the Create Pool page at any time to see LPs that you have previously created and view their AMM IDs.
