If I’m creating a liquidity pool, how much money should I put in? Can I withdraw it whenever I want?
There’s no universal minimum — in theory you can create a pool with very little (tens of dollars). The right amount depends on your goals and budget.
Key points:
• Pool size determines initial price stability and available trade depth. Small pools (e.g., a few hundred USD) will show large price swings with even modest trades. Larger pools (e.g., 10k–100k USD) give much smoother price action and better user experience.
• Example: with 10,000 USDT + equal value tokens in the pool, typical single trades of 1,000–2,000 USDT might be acceptable without huge slippage. Smaller pools will suffer bigger slippage with similar trade sizes.
Withdrawing liquidity:
• When you create liquidity you receive LP tokens representing your share. You can redeem (burn) LP tokens to withdraw your share at any time — provided the contract and platform support it.
• The assets you receive back depend on current pool balances and prices. If many trades happened while you were providing liquidity, your withdrawn asset ratio may differ from the initial deposit (impermanent loss).
• Some projects lock liquidity (LP lock) to increase user confidence — locked LP cannot be withdrawn until the lock expires.
Recommendations:
• For testing/demos: a few hundred to a few thousand USDT is fine.
• For public listings & to attract traders: consider starting with at least ~10,000 USDT-equivalent.
• If you want to build trust, consider locking liquidity via a reputable lock/escrow mechanism.