Getting started
To access PowerPools on our mobile app, click on the Pools icon (shaped like a teardrop) on the top right of the home screen. This should open the PowerPools AMM screen. Any active or inactive pools that you currently have will be displayed in the Your Pools screen, and you can toggle between active and closed pool views by using the toggle switch.
Create a pool
To create a pool, click on the Create Pool button. This will take you through the steps to create a pool.
- Select Currency Pair
- Name the Pool (optional)
- Set Price Range
- Specify Deposit Amounts
- Set Tolerance and Markup
- Review and Confirm
Step 1: Select Currency Pair
Select the currency pair that you want to use for this pool.
Step 2: Name the Pool (optional)
In this optional step, you can specify a custom name for the pool you’re about to create. This will help you keep track of your pools if you plan to divide your liquidity among several pools. Click the + Add Label button and enter a name for the pool, then tap the Save button.
Step 3: Set Price Range
Specify the price range of the currency pair that you would like the pool to use. While the spot price of the asset is within this range, the pool will remain active and continue to earn yield. If the spot price of the asset moves outside the range, the pool becomes out of range and will cease to earn yield until the price moves back into the range.
The default lower bound is automatically prepopulated to around -15% of current spot price and the default upper bound is automatically prepopulated to around +30% of the current spot price, but you are free to change these limits as you see fit. You can do so either by using the sliders or by manually typing in the upper and lower bounds.
Note: Setting the price range to be wider means that your pool has a higher chance of staying active even in the face of market volatility, but this also means spreads your liquidity across a wider range earning you less markup per trade. Conversely, setting the range to be narrower earns you more markup per trade since your liquidity is concentrated in a smaller range, but this increases the chance of the pool becoming inactive if market volatility causes the spot price of the asset to leave the range.
Step 4: Specify Deposit Amounts
This step requires you to specify how much of each asset in the pair you would like to deposit to this pool initially. Taking into account the price range, a commensurate amount of each asset needs to be deposited into the new pool to ensure that it is balanced.
Type in the amount you would like to deposit on either leg of the currency pair. The app will automatically calculate the required deposit amount for the second asset.
Step 5: Set Tolerance and Markup
The Tolerance slider becomes relevant when creating a pool with unbalanced amounts of the currencies in the pair, or when adding unbalanced liquidity to an existing pool. PowerPools will automatically make spot trades on your behalf to balance out the pool in these events, and setting the tolerance for the pool specifies the maximum slippage you're willing to accept on these spot trades.
Use the Markup slider to specify the markup percentage that your pool will charge. Setting low markup will encourage the pool to pack small orders tightly together. You will trade more often but in smaller sizes. This favors slow markets. Setting high markup will encourage the pool to spread orders further apart but in larger sizes. This favors fast markets, but you will make significantly less in slower markets.
Step 6: Review and Confirm
You're nearly done. Tap on the Review Pool Details button to be taken to a summary screen where you can review the parameters of the pool you're about to create. If you want to change anything you can use the back arrow at the top left of the screen to go back to any of the previous steps. Once you're satisfied with the parameters, swipe up from the bottom of the screen to confirm.
Congratulations! You’ve set up an active pool and it is earning markup! You should be able to see the newly created pool appear on your pools overview page.
