# Create Pool

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. 

<figure><img src="/files/L5SmbK58oaUoPgGzkuFd" alt=""><figcaption></figcaption></figure>

**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.

<figure><img src="/files/JlXJZdNOYaRETjmAvTb0" alt=""><figcaption><p>The token selector list shows compatible tokens in your wallet and a few pre-defined popular tokens to give you a sense of other compatible tokens. For a comprehensive list of ERC4626 tokens, refer to <a href="https://tvl.erc4626.info/">https://tvl.erc4626.info/</a></p></figcaption></figure>

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.

<figure><img src="/files/5TZCJ8INNWefJErwH4Vk" alt=""><figcaption></figcaption></figure>

{% hint style="info" %}
The starting date is pre-defined and cannot be altered.&#x20;
{% endhint %}

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.&#x20;

Below is an example of completed input fields.

<figure><img src="/files/Gs16QdcOB4JnoQs5uRNF" alt=""><figcaption></figcaption></figure>

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

<figure><img src="/files/S8XPASH2c1iYLk4pCD6X" alt=""><figcaption></figcaption></figure>

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.&#x20;

{% hint style="info" %}
LP token holders remain entitled to fees from Yield Token (YT) swaps as they are driven by flash swaps utilizing the PT<>iBT pool.
{% endhint %}

### **Questions?**

[View this FAQ section on pool creation.](/the-basics/faq.md#pool-creation)


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