Disclaimer: This blogpost is in continuation to the previous blogpost that talks about how one can create their own cryptocurrency. If you haven’t read that article, this one is probably not meant to be read in isolation.
With that out of the way, let’s get started. Last time, we created our token called PandaToken on Binance Smart Chain. Until that point, we were able to transfer all the token supply in our Metamask Wallet and it was ready to be shared with our friends and family. From participating in petty airdrops to actually conducting one, we have come a long way in this journey. However, we want more right? We want to list it on Pancakeswap for the world to transact with our token right?
That’s exactly what we are going to learn today. Raise your hands if you are as excited as me. Dopamine shot is real with this one!
How Pancakeswap Works?
So any Decentralized Exchange or DEX like Uniswap or Pancakeswap is a lot different in working as compared to a centralized exchange or CEX like CoinDCX, Binance etc. You see in a CEX, there’s an order book where all the open buy and sell orders are matched with each other and the exchange takes care of the asset swapping. On the other hand, in a DEX, this happens in a decentralized manner.
Investors put in some assets (any cryptocurrency) in something called a liquidity pool. Later, traders come along and exchange their assets with the ones in the liquidity pool. Basic supply and demand takes care of the prices of the assets in the pool. If you wish to dive deeper in to the working of decentralized exchanges, read my blogpost on Automatic Market Maker here.
Since nobody knows about your token yet, there is no liquidity available for it in a decentralized exchange. Similarly, none of the exchanges have so far listed your token. So it is important for you to enable it’s trading starting from a DEX. Let’s explore how to do that on Pancakeswap in a step by step guide.
Step 1: Login and Connecting to Pancakeswap:
Go to pancakeswap.finance. On the top right corner, find an option to connect the wallet. Once you press that button, you would be shown a pop up with a variety of wallets (as shown in the image below). Select Metamask and authorize the connection from the Metamask extension when prompted.
Once you are done, your Metamask wallet address should be displayed on the homepage indicating that it’s connected.
Step 2: Finding Contract Address for Your Token:
This is very important. Not only because you need this address for providing liquidity, but also this is like the unique identity of your token. There are multiple PandaTokens out there, however, the token with contract address: 0xB7e78d2843e65851BBBd5426D4eE423ebbAf8711 belongs to me.
Moving on, so in the previous blogpost, we transferred all the tokens after deployment to our own Metamask wallet. Let’s explore the transactions of our wallet to find the contract address of our token. Since blockchain records all the data in a public domain, all the transactions for a particular wallet can be viewed on BSCScan.
Simply open the link and enter your Metamask wallet address on the search bar provided. Once you do that, you would see a screen that will have the entire information including transactions happening from your wallet.
Refer to screenshot to find the dropdown that is going to have the list of all the tokens in your wallet. Once you select your own token, it will open up a different page which will be like a Janam Kundli for the token. In that page, you would find a section called profile summary. This would have the contract address. You can copy that same with a single click. (Screenshot below)
Step 3: Liquidity Provision
From the navigation menu on the top select trade and then select liquidity from the menu. Once you do that, you should land on a page where can now add liquidity.
Tap on add liquidity and you should be able to select the cryptocurrency pair from this screen.
In the first input, enter BNB. Why? Because you already have BNB in your Metamask ever since we started this experiment.
In the second input enter the contract address you found in the previous step. This will ensure that you are providing liquidity to your own coin and not some doppelganger crap (assuming that yours have some real use case)
Step 4: Deciding the Price:
Once you select the pair, you would get a notification saying that you are the first liquidity provider. (Screenshot below).
As a liquidity provider, you would have to add both BNB and your own token. This ratio is going to determine the price of your token. Example, I added 1,000,000 PND against a price of 0.01 BNB.
This would mean that entire supply of PND can be bought with Rs. 500 OR, 1 PND would cost about Rs. 0.000049.
You can tweak the price as per your convenience to select a price band for your token.
Note: You will have to pay a gas fee to enable the liquidity. This price would be less than $2 in most cases.
That was it. Go ahead and share the contract address with anyone. Simply ask them to swap your token with BNB. You could also provide liquidity against other tokens like USDT, ETH as and when required using the exact same steps.
And just like that, you have a running publicly traded token at your disposal. Have fun and let me know what you plan to do with this information.
Until Next Time. . .