Tool sheet · AMMCreate

Create AMM Pool

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Create a new Automated Market Maker pool for an asset pair with an initial deposit. Burns a special AMMCreate fee (one owner reserve) — this is intentional anti-spam.

What

Creates a brand-new AMM pool for a pair of assets, seeded with your initial deposit of both. You receive all of the pool's LP tokens.

Why you'd use it

If no pool exists for a pair you care about — say, your token against XRP — creating one gives the pair always-on liquidity so anyone can trade it at any time.

How

Enter Asset 1: currency (XRP or a token), issuer (blank for XRP), and your deposit amount.
Enter Asset 2 the same way.
Deposit at the price you believe is fair — the ratio of your two deposits sets the pool's starting price.
Set the Trading Fee in units of 0.001% (500 = 0.5%; the maximum is 1000 = 1%).
Submit and confirm tesSUCCESS. Check the pool with AMM Pool Info.

Watch out

Creating an AMM burns a special fee equal to one owner reserve (currently 0.2 XRP) — that is intentional anti-spam, not an error.
If your starting ratio is off-market, arbitrage traders will immediately trade against you until it matches reality — you pay for the mispricing.
Only one AMM can exist per asset pair; if one exists, deposit into it instead.
Pooled funds are exposed to 'impermanent loss': if the two assets' relative price moves a lot, withdrawing can be worth less than just holding them. Fees offset this, but nothing is guaranteed.

For example

You issued a community token and want it tradable around the clock. You create an AMM with 1,000 XRP and 10,000 of your token (pricing it at 0.1 XRP) with a 0.5% fee — now anyone can buy or sell it at any hour without a counterparty.