> For the complete documentation index, see [llms.txt](https://docs.ferra.ag/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.ferra.ag/user-guide/create-liquidity-pool.md).

# Create Liquidity pool

A liquidity pool is an on-chain reserve managed by a smart contract that holds two or more assets and algorithmically quotes swap prices. By launching a pool, you bootstrap the market for a token pair & earn a share of trading fees (and any bonus incentives).

This guide describes the end-to-end walkthrough to **create a liquidity pool** on Ferra's DLMM & CLMM pool and seed it with initial liquidity.

<figure><img src="https://4013375129-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FGdf32D8CoGbu8zkzinPx%2Fuploads%2FC05De8U3Yv0maSGFWobC%2Fimage.png?alt=media&amp;token=397b7011-fd4d-475e-a8a2-3b058a65bb68" alt=""><figcaption></figcaption></figure>