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

# New Pool Creation

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? <a href="#how-to-create-a-new-liquidity-pool" id="how-to-create-a-new-liquidity-pool"></a>

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**

In order to create liquidity you need to have these:

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.
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.fanx.xyz/> and Connect Wallet, refer to [this page](https://app.gitbook.com/o/qMzScKT0sjHHDDrav65V/s/6nMCuiBX7YfVJ4DbM0Fy/~/changes/10/fanx-user-guide/adding-chiliz-chain).
2. After connecting your wallet, scroll down the page you are on and click the "ADD LIQUIDITY" button.

<figure><img src="/files/BM4TYV1FwD0oeQZ7Al2r" alt=""><figcaption></figcaption></figure>

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

<figure><img src="/files/YyDIuE0AD2ugMfc9wP9i" alt=""><figcaption></figcaption></figure>

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

<figure><img src="/files/73HbMOlyQfELJA4ujeHw" alt=""><figcaption></figcaption></figure>

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

<figure><img src="/files/haokIaI7q8iv5z4aTc8Y" alt=""><figcaption></figcaption></figure>

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

<figure><img src="/files/GQLBIY58SxjQX6THjPFD" alt=""><figcaption></figcaption></figure>

7. 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="/files/3G7ZYIahyEmcCOytzGQo" alt=""><figcaption></figcaption></figure>

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

<figure><img src="/files/mp04MORs0UqVc7VUkS9i" alt=""><figcaption></figcaption></figure>

9. Set a spending cap for your token, anc Click Confirm. *Spending cap should be more than the amount you plan to add to liquidity.*&#x20;

<figure><img src="/files/FVG2xEaJ7EdX4mwRJYFZ" alt=""><figcaption></figcaption></figure>

10. Click on "CONFIRM AND ADD LIQUIDITY"

<figure><img src="/files/rKRDtFuticlWnSSjrcOc" alt=""><figcaption></figcaption></figure>

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

<figure><img src="/files/uMCbGcAIiIfxsxMYAdcw" alt=""><figcaption></figcaption></figure>

12. Your transaction has been completed.

<figure><img src="/files/j37MLw9SUdFPBx56CTne" alt=""><figcaption></figcaption></figure>

13. You can view your position on the LIQUIDITY page > My Positions section : <https://app.fanx.xyz/>&#x20;