Introduction

In order to participate in a KyberSwap Elastic pool and earn fees, you first need to add liquidity to the pool. Adding liquidity to a pool opens a new position. You can add liquidity either to an existing pool, or as part of creating a new pool. This guide describes the steps required to create a new pool by adding liquidity.

Note: “Adding Liquidity” should not be confused with “Increasing Liquidity.” Adding Liquidity means creating a new position, whereas Increasing Liquidity pertains to increasing the size of a position you currently hold. A separate guide on Increasing Liquidity can be found on our Help Center.

Adding Liquidity to Create a New Pool

Here are the steps to create a new pool and by definition, to open a new position.

Step 1: Ensure you are on the correct network, and then click the “Create Pool” button at the top right of the screen.

This will bring up the Add Liquidity screen, but it will be fairly empty until the parameters of the pool are properly specified.

Step 2: Select the pair of tokens you would like to create the pool with. You can choose from already whitelisted tokens or import any token on your chosen network.

Step 3: Select your fee tier. For a list of fee tiers and their recommended applications, please refer to this article.

Step 4: Set your price range. This is the range at which your capital will be used in the pool. If the market price moves outside the range your capital will not be used and will not earn any fees.

You can set your price range either using the sliders or by typing in prices manually.

Note: You can also choose to click on the “Full Price Range” option, but that will set your range to be between 0 and infinity, and your liquidity will be very thinly spread out, greatly impairing its fee-earning potential.

Step 5: Specify the deposit amounts, or how much liquidity you would like to add to open this position. You can either manually type in amounts or use the “Max” and “Half” buttons. Once you specify the deposit amount for one leg of the pair, the corresponding leg’s amount will be automatically calculated and populated for you.

Note: The proportion of liquidity deposited for each leg of the pair is determined by your price range, so it is helpful to set the price range before specifying your deposit amounts.

Step 6: If you haven’t already done so, you will need to need to authorize the KyberSwap smart contract to transact using your tokens on this network. Click the “Approve [Token]” button to do so. This will open the approval dialog window on your wallet.

Once the approval is confirmed, the previously-greyed-out “Preview” button will be clickable.

Step 7: Click on the “Preview” button to bring up the preview screen. Once you have reviewed the information on this screen, click on the “Supply” button to proceed.

You will need to confirm this transaction in your wallet.

Once you’ve confirmed the transaction you will see a screen informing you that the transaction has been submitted. You can click on “View Transaction” to view your transaction on the appropriate blockchain explorer.

Your new position should now be visible on the My Pools page on KyberSwap.