Creating a Standard AMM Pool

Introducing Permissionless AMM Pools on Trader AI:

Trader AI empowers users to establish their own liquidity pools using our permissionless AMM system. Once created, these pools are instantly available for trading, seamlessly integrated with Trader AI’s trading interface.

Steps for Creating an AMM Pool on Trader AI:

1. Obtaining a Unique Market ID:

   • Start by securing a unique Market ID for your pool, a crucial identifier that differentiates your pool on Trader AI.

2. Setting Pool Parameters:

   • Determine crucial trading parameters like minimum order size and price tick size (the smallest price variation allowed). These settings dictate the trading mechanics within your pool.

3. Creating Your Market ID:

   • Generate your Market ID via a specific link provided on Trader AI. Note that this process may require payment in the platform’s native cryptocurrency.

4. Launching Your Pool:

   • Head to the Liquidity Page and select 'Create Pool'.

   • Fill in your Market ID and other vital details such as the initial liquidity and starting price for both tokens in your pool.

   • Once you confirm these details, the pool’s settings are finalized and cannot be altered.

5. Pool Initialization:

   • Approve the necessary transactions in your wallet to complete the pool creation. This step establishes your pool and transfers the initial funds into it.

6. After Creation:

   • Upon successful creation, your pool receives an AMM ID for identification and sharing within the Trader AI platform.

   • The pool becomes operational at the predetermined start time.

Explanation of Price Tick Size and Minimum Order Size:

Price Tick Size:

• This is the smallest increment by which prices in your pool can change.

• Ideally, set the Minimum Price Tick Size to a maximum of 0.1% of your base token's starting price.

• For example, if your base token is priced at $1 against USDC, the tick size should be up to $0.001. For a SOL pairing, adjust the tick size in proportion to SOL’s market value, ensuring it stays within the 0.1% guideline.

Minimum Order Size:

• This parameter sets the smallest trade size in your pool. It’s especially important in markets like SOL/USDC, where it’s measured in SOL.

• More decimal places in Minimum Order Size and Tick Size offer greater flexibility but remember the combined limit of six decimal places.

• Adjust these settings based on your token’s value, ensuring optimal trading conditions for lower-valued tokens.

Be cautious with the minimum tick size settings. If set excessively large, it might necessitate a complete overhaul of the market. This involves relaunching the pool and transferring liquidity to the newly created market.

Our platform is currently under development, and we will be providing updated information and detailed step-by-step guidance on how to utilize each feature as we progress.