Creating new pool or adding liquidity to already existing pools on DMM is quite simple and hassle free. One important detail to take note is the amplification facor (amp) which determines the virtual balances of the pool.

## Create a new pool#

You can create a new pool for an existing pair or for a new pair/token. You can play around with the amp factor and see the how the price range changes. Note that an unamplified pool (amp = 1) covers an infinite price range. Each pair can have multiple pools, with different amplification factors and every pool will have its own LP token. Our recommendation on the amp factor would be to use 1.15 - 1.3 for most pairs. However, for closely related assest pairs, you could have a higher amp factor as well. For example, for an intial price of 1, $p_0$, P{min} and P{max} supported according to the amp factor will be as :

Amp factor1.131.21.3
$P_{max}$58.783618.78
$P_{min}$0.020.030.05

LP fees, charged on every trade, will range between 0.15%-0.6% and are adjusted automatically based on volume which we call Dynamic Fees.

• Do note that while creating a pool or adding liquidity, if it's your first time using the DApp you might have to do approve token as well

## Add liquidity to an existing pool#

You can add liquidity to an exisiting pool pool by clicking the + Add Liquidity option on the DMM UI. If you're aware the pool address you want to add liquidity to, youcan search by the pool address else, select the token pair and choose any of the existing pool.