In order for your newly created omni-token to be tradable against other assets you will need to create what is known as a liquidity pool. A crypto liquidity pool is a collection of cryptocurrencies or digital assets that are locked in a smart contract to facilitate trading on decentralized exchanges (DEXs). Liquidity pools are a key component of decentralized finance (DeFi) and enable a variety of financial services, including lending, trading, and earning yield.
In the example below, we will create a new liquidity pool on one of the most popular decentralised exchanges (DEX) UniSwap.
1. Navigate to uniswap.org and click on "Pool" on the top left.
2. Select "Create position" from the drop down menu.
3. Select the asset that you wish your token to be traded against.
4. Search for your token on the "Choose token" drop down menu. If you do not see your token, simply copy and paste your token's contract address into the search bar.
5. Set the starting exchange rate between the two tokens you are providing and click "Continue". Note that the price is determined by the ratio of tokens you deposit in the pool. For example, if you deposit 100 USDC and 10 of your tokens, the starting price will be 10 USDC per token.
6. Set the price range and click "Continue". Note that providing full range liquidity ensures continuous market participation across all possible prices, offering simplicity but with potential for higher impermanent loss.
7. Specify the token amounts for your liquidity contribution and click "Review" to continue.
8. Ensure that all the information is correct and click "Create".
9. Click "Confirm" on your wallet extension popup to approve the transaction.