Add Liquidity to Pools

Why Your Token Needs Liquidity

After creating a token on Sui, you can't trade it immediately—unlike platforms like Pump.fun that offer built-in trading. On Sui, you must manually create a liquidity pool on a DEX. Here are the top Sui DEX options:

Cetus: The largest decentralized exchange (DEX) on Sui.
Turbos: A zero-slippage perpetual and spot trading platform.
BlueMove: Supports both NFT and token trading (Aptos/Sui).

This guide focuses on Cetus, the most widely used DEX.

Why Add Liquidity?

Enable Trading: Without a pool, your token is just blockchain data—no one can buy or sell it.
Stabilize Prices: Automated Market Maker (AMM) algorithms (e.g., x*y=k) balance price fluctuations. Larger pools = less price impact per trade.

Who Provides Liquidity?

Projects: Inject initial funds (e.g., 10K SUI + 10M tokens) to bootstrap trading.
Users: Earn 0.3% fee shares by staking in pools.

Step-by-Step: Creating a Pool on Cetus

1. Connect Your Wallet

Use the same wallet that holds your token (you'll deposit tokens into the pool).

2. Navigate to Pool Creation

Click Earn → Pools → Create New Pool.

3. Set Up the Trading Pair

Token Selection: Paste your token's full contract address (include the :: suffix from SuiScan's "Type" field).

Quote Token: Default is SUI (or choose USDC).

4. Configure Slippage

Stablecoins: 0.01–0.05% (low volatility).
Meme Tokens: 0.25–1% (high volatility, ensures trades execute).

5. Set Initial Price & Range

Price: E.g., 1 Token = 0.0001 SUI (1 SUI buys 10K tokens).

Range: Select Full Range for unlimited trading.

6. Deposit Liquidity

Example: Add 4 SUI + 40K Tokens (auto-calculated).
Sign the transaction → Pool is live!

Trading & Managing Liquidity

Test Trading: Go to Swap to buy/sell your token (note: small pools have high slippage).

Add/Remove Liquidity:

Add: Increases depth (reduces slippage) but doesn't raise token price.

Remove: Withdraw funds (risks price crashes if done abruptly).

When to Remove Liquidity?

Legitimate: Protocol upgrades, security fixes, or project sunsetting.
Risks: Sudden removals can trigger rug pull accusations or token collapse.

Advanced: Liquidity Staking

Traditional Staking: Locks tokens (no trading).
Liquidity Staking:
1. Deposit tokens into a pool → get LP Tokens.
2. Stake LP Tokens to earn:
  - Trading fees (0.3% per swap).
  - Bonus rewards (e.g., project incentives).