The concept is simple: two tokens are deposited into a smart contract at a fixed ratio, enabling users to trade between them in real time. This is why deploying a token does not mean it is tradable—only after liquidity is created does a token truly go live.

Before you begin, make sure your wallet meets one basic requirement:

On BSC, you must keep at least 0.03 BNB in your wallet to cover token approvals and gas fees. Insufficient balance is the most common reason liquidity actions fail.

🛠️ Creating Liquidity (V2)

• Creating liquidity sets up the first trading pool for your token and determines whether it can be traded at all.

Steps:

1️⃣ Connect your wallet and enter the private key used to create liquidity

• Connect Wallet (Select the wallet you wish to create liquidity with; ensure sufficient funds are available in the wallet)

• Enter the private key used to create liquidity

2️⃣ Select the two tokens to add to the pool (e.g. WBNB + your token, or USDT + your token)

3️⃣ Enter the amounts for both tokens (this ratio directly determines the initial token price, so calculate carefully in advance)

*Hint: Please calculate the amount yourself. The ratio cannot be changed after liquidity creation.

4️⃣ Approve the token if this is your first interaction

5️⃣ Review all parameters and click “Start Swap”, then wait for on-chain confirmation

Create Liquidity (V2): https://bsc.ciaotool.io/swap/v2/create-liquidity-v2

➕Adding Liquidity (V2)

• Once a liquidity pool already exists, adding liquidity helps increase depth and reduce price volatility.

Steps:

1️⃣ Connect your wallet and enter the private key used to add liquidity

2️⃣Enter the amount of one token (Token A); the other side will be calculated automatically

3️⃣Approve the token if required

4️⃣Confirm the details and click “Start Swap”to complete the process

Add Liquidity (V2): https://bsc.ciaotool.io/swap/v2/add-liquidity-v2

🔻Removing Liquidity (V2) 🔻

• Removing liquidity often called “withdrawing the pool”allows you to reclaim tokens deposited in the LP contract. You may remove liquidity partially or entirely.
• If all liquidity is removed, the token will no longer be tradable.

Steps:

1️⃣ Connect your wallet and enter the private key used to remove liquidity

2️⃣ Select the liquidity pool you want to withdraw from

3️⃣ Choose the removal percentage (25% / 50% / 75% / 100%)

• 📌 Important note on percentages: If multiple users provided liquidity, the percentage applies only to your personal share of the pool. For example, if you own 20% of the pool, removing 100% will only withdraw that 20%—not the entire pool.

4️⃣ Approve the token if required

5️⃣ Review and click “Start Swap”, then wait for on-chain confirmation

Remove Liquidity (V2): https://bsc.ciaotool.io/swap/v2/remove-liquidity-v2

Conclusion: Why V2 Comes Before V3

• By this point, you should have a complete understanding of how V2 liquidity works—from creation, to expansion, to withdrawal. V2 remains the default choice for most projects because of its simplicity and broad compatibility, especially for tokens with transfer fees, burns, or other custom logic.
• However, this same general-purpose design limits V2 in terms of capital efficiency, liquidity concentration, and precise price control. As a project matures and requires more refined market-making strategies—such as concentrating liquidity within specific price ranges—V3 liquidity becomes the next step.
• It’s important to understand that V3 is not a simple upgrade from V2, but a fundamentally different mechanism. Without a solid grasp of V2, jumping directly into V3 often leads to costly mistakes.

💬 Need help? Join our community for real-time support: https://t.me/ciaotool

Email: support@ciaotool.io

Website: https://ciaotool.io

X (Twitter): https://x.com/CiaoTool

Medium: https://medium.com/@ciaotool

YouTube: https://www.youtube.com/@CiaoTool

WhatsApp：https://whatsapp.com/channel/0029VbAuLrVAojYxRNw95W1J