Create Liquidity Pool in Solana in 1 minute

To give purpose to a token on Solana, you must add liquidity, which means pairing it with an existing token that has a more stable value, usually $SOL or $USDC, this is called creating a Liquidity Pool on Solana.

When launching a token (creating it and adding liquidity to it), the Liquidity Pool must be available on a decentralized exchange (DEX), with Raydium being the most convenient and chosen option in the Solana ecosystem.

If you prefer the video version this is for you:

Here we explain how to create a Solana token.

Creating Liquidity Pool in Solana step by step

All action within the Solana blockchain is done following the parameters of Solana Program library (SPL) and Raydium offers the creation of Liquidity Pool in 2 steps, first the creation of an Open Book Market and then the Liquidity Pool itself (adding liquidity), but I'd like to show you how to do it in just one step using the Smithii Tool dApp .

As we mentioned, with Smithii's "Create Liquidity Pool" dApp, you can accomplish this in a single step. Navigate to the Create Solana Liquidity Pool (https://tools.smithii.io/liquidity-pool/solana) to view the following interface:

This tool allows us to create our liquidity fund at Raydium with a friendly user interface and from only 1 SOL (up to 3.5 SOL depending on the configuration used).

You can choose to create the liquidity pool under Raydium v4 or v5 protocol (the latter known as CPMM). If you want to know the differences, we will tell you about them in our comparative article, although now we will continue with v4.

1. Go to Create Solana Liquidity Pool ( https://tools.smithii.io/liquidity-pool/solana) and connect your wallet to use the tool.
2. Select the «Base Token" (The token created token does not yet have a market value).
3. Select the "Quote Token" (a token market value; typically SOL USDC).
4. Set advanced options: Event Queue Length, Request Queue Lenght, OpenBook Market and Orderbook Lenght (only if you want to use a cheap Market ID , from 0.4 SOL).
5. Set the number of tokens and SOL/USDC you want to add.
6. Set launch date (optional).
7. Snipe your own token optional; see the full section below).
8. Click on "Create Liquidity Pool" and accept the 3 transactions.

It will take a while to complete and you will then see the market ID and the address of the liquidity pool. Save them, as you may need the addresses for future use.

*In "advanced options" we can modify the size of our OpenBook Market, I leave you the inputs that you should use for 3 different sizes that I can recommend you:

How to Bundle for Your token

If you want to prevent sniper bots from acting, you should execute a bundle transaction for your liquidity pool. Bots are responsible for draining your token's liquidity, so the smartest approach would be to preempt their activity.

There is a rapid method using a single wallet, and a more sophisticated approach that allows for the use of up to four wallets simultaneously. These features are optional, and their options become available once the "«Snipe your token«" option is selected.

Make Bundle Transaction with a single wallet

To make Bundle Snipe with the same wallet with which we created the liquidity pool, we simply select the option and then fill in the amount of SOL we want to buy in that same transaction.

The amount that we put will be the amount that we buy in the same block of the liquidity pool creation, leaving without opportunity to bots.

Make Bundle Transaction with multiple wallets

Another more advanced way is to use more than one wallet to do it, which will make it look more organic and you will also be able to avoid part of the slippage.

What you must do here is to insert the private key of each wallet with which you will auto snipe (Smithii does not store any key) and define the buy amount for each one.

How to create a Liquidity Pool in Solana from an Openbook Market in 2 steps

The Openbook Market will allow you to set additional parameters for the Liquidity Pool you are creating. The higher the standard, the higher the volume of transactions you can handle, but the more expensive the Liquidity Pool is. In case you want to create an LP with an Openbook Market, we show you how to do it below.

1. Create the Openbook Market

Once you have your token ready, we start our process directly from Smithii Tools in the section «Create OpenBook Market» (tools.smithii.io/openbook-market/solana) and we will connect our wallet.

Basically, creating a market means that we will create the pair of tokens with which we can later create the liquidity pool.

To create an "optimal" OpenBook Market we will have a cost of 2.8 SOL, but we can also modify the size of this Market ID to make it cheaper, starting at 0.4 SOL.

In summary, the main problem that a low-cost Marker ID could generate is that our token experiences a high volume of transactions, with a percentage of these resulting in errors because they are not processable by our market.

Although under experiences shared with Smithii, to create memecoins that do not reach more than 500k MarketCap there is no problem.

Take it into account and decide what you prefer, but to create a serious project I recommend you not to skimp on expenses.

First, we need to select the tokens that will make up the pair. In “Base Token," select the token you have created token does not yet have a market value.

Next, we select the Quote Token, which is the value token; we recommend using SOL or USDC.

We proceed with the minimum change in the price, which defines the smallest price variation for our token. It is Raydium's recommendation to set 0.000001 if we have previously set 100.

These figures are provided for reference, assuming an average token with a 100M supply. You can utilize any of the data in the following table for your OpenBook Market.

Before finishing we can activate "advanced options" to modify the size of our OpenBook Market, I leave you the inputs that you should use for 3 different sizes that I can recommend, always taking into account the potential errors that can generate.

To finish, we will click on "Create Market" and confirm the transaction, which will be between 2.5 and 5 SOL. Once this is done, we will obtain the "OpenBook Market ID" that we will copy to go to the next step.

2. Once we have the Openbook Market , we create the Liquidity Pool.

Once the market is created in Raydium, we can proceed directly with creating the liquidity pool. It is important to note that you can only create the liquidity pool if your token is "Freeze", that is, it has limited the creation of more tokens, so its maximum supply is definitive.

To do so you can go to this dApp to revoke freeze Solana token, select your token and complete the process. The cost is only 0.1 SOL.

Having clarified this, it's time to create the liquidity pool. You can do this using smithii's Create Liquidity Pool tool by selecting the option «I already have an OpenBook Market». However, we will also explore how to Create a Liquidity Pool on Raydium.

If you want to list your token on Jupiter Exchange here is how to add a token to Jupiter.