🎓Create Pool

This guide will assist you in navigating the 'Create New Pool' module.

Creating a pool on Spectra is completely permissionless.

In the top section of the module, you are presented with 3 areas for key ingredients required to create a pool - an interest-bearing token, Target APY, and maturity date.

The first input [Select iBT] allows you to select a compatible interest-bearing token (iBT) from your wallet, which will serve as the pool's initial liquidity.

The second area requires you to define the pool's maturity. Choose from preset periods of 3, 6, or 12 months, or specify a custom date using the handy calendar feature. It can range from as little as 2 days to up to 4 years.

The starting date is pre-defined and cannot be altered.

The third area requires pool creators to enter the Target APY. It is an estimate of the average annual percentage yield the pool aims to achieve over its lifespan. To determine the target APY, the pool creator can utilize the native interest-bearing token (iBT) platform to check its current and historical APYs. Cross-referencing this data with reliable DeFi yield trackers, such as DefiLlama, provides a comprehensive view.

Below is an example of completed input fields.

Here's what the output area displays in our case:

The pool creator receives an LP token composed of iBT and Principal Token. Yield Tokens also result from the yield tokenization process; however, they are not a part of the pool composition. After a successful pool creation, LP and YT tokens are displayed in Portfolio under their respective tabs.

LP token holders remain entitled to fees from Yield Token (YT) swaps as they are driven by flash swaps utilizing the PT<>iBT pool.


View this FAQ section on pool creation.

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