> For the complete documentation index, see [llms.txt](https://docs.icpex.org/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.icpex.org/product-features/how-to-create-a-fixed-ratio-anchored-pool-with-nearly-zero-volatility-for-lst.md).

# How to Create a Fixed Ratio Anchored Pool with Nearly Zero Volatility for LST

With the development of ICP DeFi, the ICP ecosystem has seen the emergence of LSD (Liquid Staking Derivatives) projects, which has led to the creation of LST (Liquid Staking Tokens). The exchange ratio between LST and the native token will be a key factor influencing the success of projects. A significant imbalance in the exchange ratio can affect the project's credibility and subsequently impact the development of related LSDFi. ICPEx provides an anchored pool feature with nearly zero volatility for LSD projects, allowing the exchange ratio between LST and the native token to remain stable. Of course, as stablecoins in the ICP ecosystem continue to develop, this feature can also be used for mutual anchoring between stablecoins.

Below, we will present the process for creating a fixed ratio anchored pool with nearly zero volatility. Assume a project's native token is tokenA, and the resulting LST is stTokenA. Both aim to be anchored at a 1:1 ratio.

## 1.Select the Liquidity Pool Mode

On the pool creation page, select **Anchored Pool**. Also, specify the two tokens that need to be anchored.

<figure><img src="https://114387288-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F-LWObRgNrco9Ho047Gv5%2Fuploads%2FS4lg1FDkQwBXOTBOei04%2F1.png?alt=media&amp;token=0c6a0ba4-2d02-445d-a667-98d57265cd16" alt=""><figcaption></figcaption></figure>

## 2.Set the Parameters

(1) Set the **Anchored Exchange Rate** to 1 and input the liquidity scale for the anchored pool.

<figure><img src="https://114387288-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F-LWObRgNrco9Ho047Gv5%2Fuploads%2Flvbzy2AFJvveI1NcjGHN%2F2.png?alt=media&amp;token=be2f1a7f-fd5f-4ff4-86f3-14f839ba4275" alt=""><figcaption></figcaption></figure>

(2) Set the Trading Fee Rate as needed. Additionally, set the **Volatility Coefficient** to 0 to eliminate volatility.

<figure><img src="https://114387288-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F-LWObRgNrco9Ho047Gv5%2Fuploads%2FX5PhBtlZEhRdKrkbF1en%2F3.png?alt=media&amp;token=20c79941-8035-4623-ae95-7a52f620cb11" alt=""><figcaption></figcaption></figure>

## 3.Create the Liquidity Pool

## 4.Let’s Test the Swap Effect

When swapping 500,000 tokenA, the exchange ratio displayed is 1 tokenA = 0.9969 stTokenA.

<figure><img src="https://114387288-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F-LWObRgNrco9Ho047Gv5%2Fuploads%2FK7jmvwB71ZrAD6jIddJ7%2F4.png?alt=media&amp;token=96cf1ead-d5d3-48d9-aae6-ccf034d56ed0" alt=""><figcaption></figcaption></figure>

When swapping 800,000 tokenA, the exchange ratio displayed is 1 tokenA = 0.9969 stTokenA.

<figure><img src="https://114387288-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F-LWObRgNrco9Ho047Gv5%2Fuploads%2F5SVagCL6sruInPIZomsO%2F5.png?alt=media&amp;token=7fed04e7-11b4-4031-bafd-099aa2d5e1e0" alt=""><figcaption></figcaption></figure>

As shown, these two large swaps do not cause an imbalance in the pool's exchange ratio, proving that the fixed ratio anchored pool is effective and reliable.
