> ## Documentation Index
> Fetch the complete documentation index at: https://docs.berachain.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Pool Creation

> Create a new pool, set initial ratio, and add liquidity; token burn requirement.

On BEX, you can initialize a liquidity pool for an arbitrary pair of tokens. When you initialize the pool, you can select the starting price ratio between the two tokens.

You can create new BEX liquidity pools here: [https://bex.berachain.com/pools/create](https://bex.berachain.com/pools/create)

To prevent spam and ensure the creation of meaningful pools, BEX requires you to permanently burn a small, economically insignificant quantity of both tokens when initializing a new pool.

## Pool initialization steps

<Steps>
  <Step title="Navigate to pool creation">
    Navigate to the "Pool" section of the BEX app and select "Create a Pool".
  </Step>

  <Step title="Select tokens">Select the two tokens you wish to create a pool for.</Step>
  <Step title="Specify pool fees">Specify the pool fees, collected on each swap.</Step>

  <Step title="Set ratios and liquidity">
    Set initial pool token ratios and amount of liquidity to add.
  </Step>

  <Step title="Confirm the transaction">Confirm the pool creation transaction.</Step>
</Steps>

<Frame>
  <img src="https://mintcdn.com/berachain-422fce37/6LKWuTvY60eeSRVD/images/bex/bex-create-pool-stable-tokens.png?fit=max&auto=format&n=6LKWuTvY60eeSRVD&q=85&s=207e1d32271febaba48e75546ec61517" alt="BEX pool creation interface showing token selection and initial ratio configuration" width="1328" height="1880" data-path="images/bex/bex-create-pool-stable-tokens.png" />
</Frame>

## Selecting the ratio

During pool creation, the price/ratio of the tokens is set based on amount of "quote" tokens per "base" token. Using the above scenario as an example, and assuming that the price of `$WETH` is $3000, the initial price of `$HONEY`is set from the initial`3000\` ratio, that is:

* Each `$WETH` is worth `3000` `$HONEY`
* Each `$HONEY` is worth `0.000333` `$WETH`
* The initial price of `$HONEY` is `$3000 * 0.000333 = $1`

If there is a known price to both tokens, you should try to set the initial price ratio to match the known prices. If the price ratio is set too high or too low, arbitrageurs will quickly correct the price to match the market.