Any user can, with just one click, create a 1inch liquidity pool using the Balancer protocol, configuring its quantity and price for each currency.
One of the ways to generate income in the crypto space is to create and launch a liquidity pool – a pool of tokens locked on a smart contract. Users provide liquidity to a pool that is used for exchange transactions.
Traders pay a commission for each exchange transaction and the funds thus collected are distributed among those who provided the liquidity to the pool, while the pool owner also receives a share.
We propose to use the Balancer protocol to create a 1inch liquidity pool – a non-custodian portfolio manager, liquidity provider and price marker.
To find out how easy it is to create a liquidity pool, follow this step-by-step guide.
(1) Select the protocol. Let’s move on to the Balancer protocol.
(2) Set the swap fee for the liquidity pool. Values range from 0.0001% to 10%. But keep in mind that the lower commission allows traders to make more swaps using your pool.
(3) Set up a pool with tokens supported by 1inch.exchange (or request support for a new token in the project’s Telegram group). Enter the amounts provided, making sure you have sufficient balance. The token price, which represents the shares of the various tokens in your pool, will be calculated automatically.
(4) Add up to 8 tokens to your pool. Just press the button “Add token“For each of them.
(5) Please enter the USD value you want to provide as the initial liquidity amount.
(6) Correct the US dollar equivalent.
(7) Change the price of each token.
(8) Unlock Tokens: Allow the smart contract to accept your tokens. Click the “UNLOCK“To receive a certain amount of tokens, or”INFINITY UNLOCK“To create an unlimited number of pools with these tokens.
(9) Now that all the tokens, amounts and price have been set, just click the button “Create pool»And confirm the action in the MetaMask pop-up window.
In this review, you could see how easy it is to create a liquidity pool with 1inch and the Balancer protocol. Now try doing the same yourself!
You can learn more about decentralized finance in the overview: What is Decentralized Finance (DeFi)?