Create a New Pool Vs Add Liquidity (Comparison)

Understanding the difference between "Create a New Pool" and "Add Liquidity" can be very beneficial in the way you approach trading. Let's describe the difference to help Enigma users understand better.

Create a new Pool:

Involves initiating a liquidity pool for a new token pair that doesn't already exist on the platform. This process requires selecting two different tokens and providing an initial amount of liquidity for each token in the pair.

Adding Liquidity:

Involves contributing assets to an existing liquidity pool on Enigma Swap. This process allows users to join an already established pool by depositing tokens into it. When adding liquidity, users must contribute an equivalent value of both tokens in the pool to maintain the balance.

So what's the comparison?

In summary, creating a new pool establishes a liquidity pool for a new token pair, while adding liquidity contributes assets to an existing pool on the platform. Both actions play a crucial role in facilitating decentralized trading and liquidity provision on Enigma Swap.