# How it works

Each pool is created by the holder or buyer of a specific collection. There can be multiple pools of the same collection, and you may create as many pools as you want. There is a small fee that must be paid when creating a pool.

When creating a pool, you’ll be presented with some options:

* A pool with STARS (for buying NFTs)
* A pool with NFTs (for selling NFTs)
* A pool with both NFTs and STARS (for both buying and selling NFTs).

<figure><img src="https://3930076611-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FSInMUrk5zXO1wiVbvasJ%2Fuploads%2F0l0H0mQ1qeoivJMQ1YjD%2Fimage.png?alt=media&#x26;token=ff10d530-e54e-42ef-8cd4-8c56d0d6f67f" alt=""><figcaption></figcaption></figure>

You may then select the NFT collection you would like to pair with the STARS token.

The last step is setting the pool parameters:

* The number of STARS tokens to deposit into the pool.
* The specific NFTs from the selected collection that you would like to deposit into the pool.
* The swap fee, which is the amount of tokens you will earn on every transaction (only applicable for “buy and sell” pools).
* The bonding curve (linear / exponential / XYK). This is the algorithm used to determine pool prices.
* The spot price, which is the starting pool price (only applicable for linear and exponential pools).
* The delta, which is a parameter used to calculate subsequent pool prices (only applicable for linear and exponential pools).

<figure><img src="https://3930076611-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FSInMUrk5zXO1wiVbvasJ%2Fuploads%2FmQ25n3NgE1akgUSY0b68%2Fimage.png?alt=media&#x26;token=81f281e9-d3e8-432a-ad84-ecc387e60c3e" alt=""><figcaption></figcaption></figure>
