CREATE A TOKEN RAYDIUM TOKEN LIQUIDITY POOL
If you have or are going to create a 2022 token on Solana the option of creating a liquidity pool is the next step. We have several DEX where to create it, although the most chosen option is Raydium. Let's go straight to the step-by-step tutorial on how to create a Token22 liquidity pool on Solana.
If you prefer the video version this is for you:
WHAT IS A TOKEN?
Before creating a token on Solana we must be clear about the concept "SPL Token-2022". SPL stands for "Solana Program Library", therefore an SPL Token is a token belonging to the Solana blockchain and created under its standards.
When we talk about SPL Token, we’re going a step beyond a token ; we call themtoken .”
These extensions have different functions, although without a doubt the most outstanding one is the option of adding a transaction fee, that is to say, what is commonly known as "Tax Token", in this case on Solana.
In short, the Token-2022, also called Token22 or Tax Token, are terms we use to refer to a Solana Token with transaction fee.
TOKEN22 EXTENSIONS
When creating the Token Liquidity Pool, we can highlight the following features of Token22:
Transfer Tax
This extension allows us to add a fee every time our token transferred to another wallet including sales).
It is important to note that this commission is from our token, not from Solana and does not go directly to a wallet that we set up, as it does in EVM. In this case the tokens are kept in a "Token Account". You can easily "withdraw" these tokens with a tool that I will show you later.
We can also set the "withdraw authority" and the token authority.
Permanent Delegate
The "Permanent Delegate" extension allows us wallet delegate our token authority to any other wallet .
This wallet will have the authority to burn or transfer tokens as it sees fit.
Default Account State
This extension has a fairly specific use, as it allows us to set the default state of the token when it is created in a wallet.
This state can be: Unitialized, Initialized and Frozen.
The status of SPL Token we usually see is "Initialized," and that is the status they will have if we do not modify this extension.
Interest Bearing Rate
The "Interest Bearing Rate" allows us to set an interest rate on our token and withdraw that amount plus interest whenever we want.
Non-Transferable
As the name of this extension suggests, if we enable it, our token will not be transferable to other wallets.
Even so, they could burn and close the token .
2 WAYS TO CREATE YOUR TOKEN 22 LIQUIDITY POOL on Solana
Usually the creation of a Tax Token Liquidity Pool on Solana is done in 2 steps: Create an OpenBook Market and then proceed to Create the Liquidity Pool. However, within Smithii solutions, we have a tool to do it in one step, we are going to show you both options but if you want to go directly to how to create a Liquidity Pool on Solana in 1 step.
CREATE TOKEN22 LIQUIDITY POOL AT RAYDIUM IN 2 STEPS:
CREATE OPENBOOK MARKET
Once you have your token ready, we start our process directly from the Smithii Tools in the "Create OpenBook Market" section: tools.smithii.io/openbook-market/Solana and connect our wallet.
Basically, creating a market means that we will create a token pair with which we can later create the liquidity pool.
Here you can find a detailed guide to creating the Token Openbook Market .
2. CREATE TOKEN LIQUIDITY POOL TOKEN ON RAYDIUM
Once the market has been created, we can proceed directly to creating the liquidity pool. It’s important to note that you can only create a liquidity pool for the Tax Token your token “frozen”—that is, if the creation of additional tokens is limited, meaning its maximum supply is fixed.
To do this, go to this page, select your token complete the process. It costs just 0.1 SOL.
Having this clear, we have to access directly to the section to create pools in Raydium: raydium.io/liquidity/create/ and connect our wallet.
Here we paste the "OpenBook Market ID" that we have previously copied and click on confirm.
We continue with one of the key sections: setting the initialprice of our token and addingliquidity to the pool.
Regarding the starting price simply indicate the one you consider optimal, it is recommended to prepare a complete tokenomics to follow a strategy.
Next, enter the amount of each token you plan to deposit; remember to ensure you have enough in your wallet.
Finally, select the date of publication of the liquidity pool and click on confirm.
After clicking on the button we will have to confirm 2 transactions, then we will see the ID of our liquidity pool Token 2022 (so we can easily search for it) and we will have finished the process. Now our Solana liquidity pool is created.
This liquidity pool will remain active on the page we entered at the beginning of this second step.
CREATE A TAX TOKEN LIQUIDITY POOL ON RAYDIUM ONE STEP
As we told you, with Smithii's dApp "Create Liquidity Pool" you can do it in 1 step. Go to https://tools.smithii.io/liquidity-pool/Solana and you will find the following view:
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).
- Go to Create liquidity group ( https://tools.smithii.io/liquidity-pool/Solana ) and connect your wallet to use the tool.
- Select the «Base Token" (The token created token does not yet have a market value)
- Select the «Quote Token » (A token with market value. Usually SOL or USDC)
- Set the "Min Order Size" (Minimum amount of tokens that users will be able to purchase).
- Set the “Tick Size" (the minimum amount by which your token price can change)*
- Set advanced options: Event Queue Length, Request Queue Length, and Orderbook Length (only if you want to use a low-cost Market ID, starting from 0.4 SOL)
- Set the number of tokens and SOL/USDC you want to add.
- Set launch date (optional)
- 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.
*You can use this table as a reference for the Min Order Size and Tick Size:
**In "advanced options" we can adjust the size of our OpenBook Market. Here are the inputs you should use for 3 different sizes that I recommend:
0.4 SOL:
- Event Queue Length: 128
- Request Queue Length: 63
- Orderbook Length: 201
1.5 SOL:
- Event Queue Length: 1400
- Request Queue Length: 63
- Orderbook Length: 450
2.8 SOL:
- Event Queue Length: 2978
- Request Queue Length: 63
- Orderbook Length: 909
If you want to list your token on Jupiter Exchange here is how to add a token to Jupiter.
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