Create a New Collateral Cave

How to Create an Altcoin Collateral Market

Overview:

Listing an altcoin as collateral in RAVE futures is a seamless process that can be accomplished in a few minutes and clicks! Any user/protocol can add any amount of virtually any token and immediately generate a Rave Cave for their token. Once that market has been created, users can immediately use the token as collateral in perpetuals, and the LPs may begin earning yield.

1. Liquidity Page:

The first step of creating a liquidity market in RAVE is heading over to the liquidity tab, accessible at the top of the page. Once on the liquidity page, simply click on the "Create Liquidity" button.

2. Enter Token Collateral Details:

Upon clicking "Create Liquidity", the following form pops up

1. Select Token Collateral Input the token address for the altcoin you wish to add, ensure that the address is correct. Keep in mind any token, including gamefi, memecoins, and any ERC20 token may be added.

2. Initial LP Provision

   Input the quantity of tokens you wish to add to the Rave Cave. Keep in mind, larger amounts of token supplied result in larger liquidity, supporting greater user trading volume. Greater trading volume results in higher yield earned.

3. Click "Create Pool" to create liquidity Pool Upon execution of the smart contract, the LP pool is created. BOOM! That's it, now any traders may trade with the supplied altcoin as collateral, and the LP provider may begin to earn yield!

Note:

LP's may only withdrawal 25% of their liquidity supplied at a time, with a roughly 48 hour waiting period in between each withdrawal. This withdrawal period exist in place to ensure stable liquidity of perpetual markets. Likewise, LPs may face a level of risk in trade impacts. However, RAVE institutes various dynamic risk mechanisms to mitigate such impacts. See Liquidity Caves for more details