Advanced Tutorials
Deploy a Liquidity Pool where unlocked tokens are paired with vestingTokens
Creating a liquidity pair on a decentralized exchange (DEX) like Uniswap is a great way to provide more liquidity for your vestingTokens and potentially earn swap fees in the process.
It’s important to be careful when setting up the pair and choosing the rate/price. In this tutorial, we’ll walk you through the steps of creating a liquidity pair on Uniswap where one token is your unlocked project token and the other is a vestingToken.
- Create a v3 or v2 liquidity pool from app.uniswap.org/#/pool
- Select the token you want to use as your base token. This should be your unlocked project token.
- Select the token you want to use as your quote token. This should be your vestingToken.
- Enter the amount of base tokens you want to add to the liquidity pool.
- Enter the amount of quote tokens you want to add to the liquidity pool.
- Be careful to set the price of the base token (your unlocked project token) much higher than the price of the quote token (your vestingToken). This will ensure that you are not providing a hazourdous mechanism for holders of vested tokens to exit their lockups at no cost.
- Follow the approval and transation submission steps to establish the liquidity pool and supply both sets of tokens to the pool.
- You can now view your liquidity pair on the Uniswap exchange and collect swap fees as users trade between your unlocked project token and your vestingToken.
Using a DEX like Uniswap to create a liquidity pair with a vestingToken can be a cool feature to allow more liquidity for your vestingTokens and to collect swap fees.
Just be sure to carefully set the price of your base token (unlocked project token) much higher than the price of your quote token (vestingToken).