Anyone can create a pool on KyberSwap on different blockchain networks!
Step 1: To create a pool, go to the ‘Pools’ tab and select the token pair you wish to create a pool for. There can be multiple pools for the same token pair. You can still create a new pool even if there are other existing pools for that token pair.
Click on the ‘+ Create New Pool’ button on the right side of the page
Step 2: Input the amount of tokens you wish to deposit (while keeping in mind the market price for the token pair) and select the AMP. As the first liquidity provider for a new pool, the ratio of tokens you supply will set the initial price.
Step 3: Once ready, click ‘Confirm’ and you will have created a pool for that token pair and added the initial liquidity into it. You will receive Kyber Liquidity Provider Tokens (LP tokens) that represent your liquidity position.
You will start earning 90% of the dynamic fees collected from the trades (10% goes to KyberDAO for KNC token holders). Fees are accumulated over time and you can receive them when you remove your liquidity.
Step 4: View your liquidity positions under ‘My Pools’ tab.
AMP stands for Amplification factor, one of the KyberSwap’s key advantages. The AMP amplifies the liquidity in the pool (Amplified Liquidity = AMP factor x Token inventory), providing much better liquidity and slippage with the equivalent liquidity pool and trade size compared to a typical AMM DEX. This enables extremely high capital efficiency compared to other platforms.
Higher AMP, higher capital efficiency within a specific price range. Higher AMP is recommended for more stable pairs while lower AMP for more volatile pairs.