Liquidity Lifecycle: Deployment, Management & Rebalancing
Last updated
Last updated
Overview of each step to deploy liquidity
Access detailed documentation on liquidity strategies
When you provide liquidity with Saros DLMM, you automatically earn a share of the fees from every swap. These fees are instantly accrued and compounded into your position with no manual claiming required. It's a smooth, hands-free way to grow your earnings.
To keep earning trading fees, liquidity providers must rebalance their positions when their liquidity falls outside the active range. This involves removing tokens from inactive bins and redeploying them into active bins that reflect the current market price. Saros DLMM simplifies this process by offering flexible options so you can either add to your existing position or withdraw and redeploy some or all of your liquidity with ease.
Costs: Rebalancing requires gas fees and may involve trading between assets, which can incur additional fees. It's important to weigh these costs when deciding how often to rebalance your position.
Market Conditions: Effective rebalancing on Saros DLMM depends on the market environment. In volatile conditions, more frequent rebalancing may be necessary to stay within the active range and maximize fee earnings.
Add liquidity in just five easy steps or keep scrolling for the detailed walkthrough.
Select a Liquidity Pool: On the Pools page, search for the pool you want to provide liquidity to.
Deposit Your Token: Use the panel on the right side of the pool page to enter the amount of tokens you'd like to deposit. For example, you can add SAROS and SOL.
Choose a Liquidity Shape: Select the liquidity shape that matches your strategy. If you're unsure, refer to the guide for help choosing the right option.
Supply Liquidity: Click the "Supply" button to confirm your deposit. Afterward, your liquidity details will be shown on the left side of the screen. Your selected liquidity shape will appear in the graph, and your balance will be updated accordingly.
Deploy liquidity across ANY price range you choose. Simply select your preferred liquidity shape, input the desired price range, and use the 'Add Liquidity' option for each batch transaction.
With Batch Liquidity Deployment, you can spread your liquidity across a wider range — perfect for a more passive and diversified liquidity provisioning strategy.
How to Remove Liquidity: 3 Flexible Options
Remove both tokens from the pool
Remove only the first token
Remove only the second token
To remove liquidity, go to the Pool page where you've provided liquidity and click "Remove Liquidity." You'll be presented with three standard options — choose the one that suits your needs and set the amount you want to withdraw (or select "Remove All" for a full exit). Option 1: Remove both tokens from the pool
Option 2: Remove only the first/ second token
If you'd like to remove tokens from specific bins, simply input the price ranges you want to target. This advanced option gives you more control and can be useful when rebalancing your position.
Participating as a liquidity provider on the Saros DLMM protocol involves several risks, including but not limited to: impermanent loss, smart contract vulnerabilities, systemic failures, liquidity shortages, regulatory shifts, market volatility, and operational errors. Your capital is at risk, and you should only invest funds you can afford to lose. There are no guarantees of returns, and all investment decisions are made at your own discretion. We strongly recommend seeking independent financial advice before participating.
