> For the complete documentation index, see [llms.txt](https://kayen-protocol.gitbook.io/documentation/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://kayen-protocol.gitbook.io/documentation/kayen-user-guide/new-pool-creation.md).

# New Pool Creation

## What is liquidity Pool?

A Liquidity Pool is a collection of funds locked in a smart contract that provides liquidity for decentralized exchanges (DEXs) or lending platforms.

In Uniswap V2, a pool is a smart contract that holds two different tokens in reserve. It allows users to trade between these two tokens automatically, using a mathematical formula to determine prices. Each pool represents a unique trading pair, like BAR/CHZ or JUV/USDC. Users can add liquidity to these pools to earn fees from trades, or swap tokens using the liquidity provided by others.

## How to create a new liquidity pool?

This shows you how to make a brand new pool for two tokens that don't have one yet. If you want to add your tokens to a pool that already exists, please use the "Add Liquidity" page instead.

#### Prerequisite <a href="#prerequisite" id="prerequisite"></a>

In order to create liquidity you need to have these:&#x20;

1. A MetaMask wallet or any other Web3 wallet.
2. You need to have $CHZ on Chiliz Chain in your wallet for the gas fee.&#x20;
3. When creating a new liquidity pool, make sure you have two different assets.

### Step-by-Step Guide <a href="#step-by-step-guide" id="step-by-step-guide"></a>

1. Go to: <https://app.kayen.org/>

<figure><img src="https://278515331-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FHYAEXjb7COsO4dFqH5tt%2Fuploads%2FxvWxpXFVaWhiZnDhFjeo%2FEkran%20Resmi%202024-10-08%2015.08.51.png?alt=media&amp;token=b6fdf0aa-bd1a-4e2c-9f67-807c83384243" alt=""><figcaption></figcaption></figure>

2. Connect your MetaMask wallet or any Web3 wallet from the top right corner.

<figure><img src="https://278515331-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FHYAEXjb7COsO4dFqH5tt%2Fuploads%2Ffkp0Yqx1zZaCZ3g2vnet%2FEkran%20Resmi%202024-10-08%2015.15.30.png?alt=media&amp;token=5b6300dc-a18c-4286-9eec-b01492a4fe39" alt=""><figcaption></figcaption></figure>

3. After connecting your wallet, scroll down the page you are on and click the "ADD NEW LIQUIDITY POOL" button.&#x20;

<figure><img src="https://278515331-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FHYAEXjb7COsO4dFqH5tt%2Fuploads%2FAwRXPKvXuV2rwTHNyLsP%2FEkran%20Resmi%202024-10-08%2015.31.50.png?alt=media&amp;token=43e065cd-6d5b-4ec7-8abd-a0c9efd90dd3" alt=""><figcaption></figcaption></figure>

4. Go to your MetaMask wallet and click on the token you want to create the liquidity pool for.

<figure><img src="https://278515331-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FHYAEXjb7COsO4dFqH5tt%2Fuploads%2F75d4gyNDqmrHZwygU64R%2FEkran%20Resmi%202024-10-10%2014.06.26.png?alt=media&amp;token=0001b1cf-116f-42f4-badd-039e84140dd3" alt=""><figcaption></figcaption></figure>

4. Copy the contract address and click on "SELECT TOKEN"

<figure><img src="https://278515331-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FHYAEXjb7COsO4dFqH5tt%2Fuploads%2FPOxum5wABn3Hs6HUqFiu%2FEkran%20Resmi%202024-10-10%2014.08.21.png?alt=media&amp;token=d91ad03a-ccb1-432f-81ce-0da6ce88b3ed" alt=""><figcaption></figcaption></figure>

6. Paste the contract address you copied and select the token that appears.

<figure><img src="https://278515331-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FHYAEXjb7COsO4dFqH5tt%2Fuploads%2F3js6sm8ihb2ANWlltp61%2FEkran%20Resmi%202024-10-10%2014.09.36.png?alt=media&amp;token=44259b1e-db8b-4da5-8adc-ad34a18b9bde" alt=""><figcaption></figcaption></figure>

7. Now select the second asset you want to add.

<figure><img src="https://278515331-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FHYAEXjb7COsO4dFqH5tt%2Fuploads%2FCybvhHgWfjignBN9gZtq%2FEkran%20Resmi%202024-10-10%2014.10.59.png?alt=media&amp;token=e59c0634-0499-4a68-bd6e-0c9d33f67377" alt=""><figcaption></figcaption></figure>

8. Enter the amount of assets with which you will create the liquidity pool and click on "ADD LIQUIDITY" *You can also adjust the slippage ratio here.*

<figure><img src="https://278515331-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FHYAEXjb7COsO4dFqH5tt%2Fuploads%2Fy2MeMDDuLkvOzEEa4otk%2FEkran%20Resmi%202024-10-10%2014.13.07.png?alt=media&amp;token=dc11e361-46f7-4277-a89a-822d77be3794" alt=""><figcaption></figcaption></figure>

9. After clicking on add liquidity, MetaMask will pop up. Please click "Confirm"

<figure><img src="https://278515331-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FHYAEXjb7COsO4dFqH5tt%2Fuploads%2FRzihhWnbzB38FiESIggf%2FEkran%20Resmi%202024-10-10%2014.58.18.png?alt=media&amp;token=324eb87d-7b99-4f43-b444-bc47f8330f62" alt="" width="375"><figcaption></figcaption></figure>

10. Set a spending cap for your token. *Spending cap should be more than the amount you plan to add to liquidity.*

<figure><img src="https://278515331-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FHYAEXjb7COsO4dFqH5tt%2Fuploads%2FbtavbS8yr7MqcNoO6Jft%2FEkran%20Resmi%202024-10-10%2014.58.50.png?alt=media&amp;token=68d20a3b-bb23-4140-9cdc-62758e988d8d" alt="" width="375"><figcaption></figcaption></figure>

10. Click on "Approve."

<figure><img src="https://278515331-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FHYAEXjb7COsO4dFqH5tt%2Fuploads%2FdOU31gNuZ9EC0zw4sZP4%2FEkran%20Resmi%202024-10-10%2014.58.56.png?alt=media&amp;token=fdf284c3-de57-4efa-b2ba-bd9adebf1e15" alt="" width="375"><figcaption></figcaption></figure>

11. Click on "CONFIRM AND ADD LIQUIDITY"&#x20;

<figure><img src="https://278515331-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FHYAEXjb7COsO4dFqH5tt%2Fuploads%2Fshw4biHnm9T37IOHt2gG%2FEkran%20Resmi%202024-10-10%2014.59.07.png?alt=media&amp;token=bc9deee7-e0fb-4201-bff7-10d99907a117" alt=""><figcaption></figcaption></figure>

12. In the last step of our process, we finish by clicking "Confirm".

<figure><img src="https://278515331-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FHYAEXjb7COsO4dFqH5tt%2Fuploads%2FyCEMFxSJe854fZNFx5ZW%2FEkran%20Resmi%202024-10-10%2014.59.16.png?alt=media&amp;token=a384cd74-3f4b-422c-b844-73b491b25ef7" alt="" width="375"><figcaption></figcaption></figure>

13. Your transaction has been completed.&#x20;

<figure><img src="https://278515331-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FHYAEXjb7COsO4dFqH5tt%2Fuploads%2FsTbOlMVidlJlImX9UDMh%2FEkran%20Resmi%202024-10-10%2014.59.26.png?alt=media&amp;token=0e2cfb8c-09f1-430c-8b1c-5aee08e693fc" alt=""><figcaption></figcaption></figure>

14. You can view your position on the LIQUIDITY page: <https://app.kayen.org/>

<figure><img src="https://278515331-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FHYAEXjb7COsO4dFqH5tt%2Fuploads%2FVZRO1qPfTVmpnTdbWJBV%2FEkran%20Resmi%202024-10-10%2015.34.29.png?alt=media&amp;token=b7f1c276-c80f-423c-8b38-0f4e2dfec687" alt=""><figcaption></figcaption></figure>