Here’s a guide on how to create a pool to easily liquidate tokens based on the EOS blockchain.
Normally to convert one asset for another it is necessary to go through exchanges, but unfortunately, platforms do not list all the existing assets, so it may be the case that a token is not accepted by the most popular exchanges or on platforms with high fees.
And this is where decentralized finance (DeFi) comes into play: thanks to several decentralized tools such as Uniswap and Bancor, it is possible to liquidate cryptocurrencies at incredible speed and swap assets for others with minimal fees.
A guide for using Bancor
With Bancor‘s protocol, for example, it is easy to create a pool for any token on the EOS blockchain (in the future there will also be integration for sister chains such as Telos), courtesy of the Block Producer (BP) EOS Nation.
The interesting thing about this platform is the possibility to use it as a real DEX (Decentralized Exchange) whereby simply logging in the wallet it is possible to instantly convert the available assets. It also allows creating liquidity pools, which we will cover in this guide, for other tokens or our token if we have developed one.
Before proceeding, some essential and fundamental elements are of course required:
- An EOS account on which tokens are stored;
- Some Bancor (BNT) tokens on the same EOS account: the more tokens owned, the greater the token’s liquidity pool.
First, it is necessary to go to the xnation.io platform (it also allows converting ETH tokens and EOS based stablecoins) on which it is possible to login with a wallet and then click on the “Create” button.
In the next screen, it will be time to choose the collateral to put in the pool, Bancor token (BNT) or Bancor stablecoin (USDB), on the right side of the screen, after which it will be possible to select the token for which to provide liquidity. For doing this the maximum fee to pay is 3%.
After that, simply enter the number of tokens to enter in the pool and their collateral in BNT or USDB and then click the “Create Pool” button to confirm the transaction on the wallet.
Once the transaction is complete, after a few seconds a pool will be created with all the relevant information, such as the token name, the account and the percentage of the fee.
In case any parameters of the pool need to be changed, it is possible to withdraw liquidity, add liquidity, change the value of the fees and even change the owner of the pool.
Creating this type of pool is easy and can be done in minutes, the time needed to make the transaction irreversible.