In this article you can learn how to open a new liquidity pool and also understand the difference between AMM mode and DLMM model.
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In this guide, you'll learn how to open a new liquidity pool on Saros DLMM, understand the key differences between AMM mode and DLMM model, and explore how Bin Steps (BPs) work in V2 pools.
V1: Traditional Constant Product Pool (x*y=k)
Maintains a 50/50 balance of both tokens across a full price curve from $0 to ∞.
Ideal for new token listings on the DEX.
Automatically balances your assets — good for set-it-and-forget-it liquidity.
V2: Saros DLMM Pool
Allows concentrated liquidity: provide liquidity only within specific price ranges.
Significantly increases capital efficiency, but also comes with more risk and responsibility.
Requires active liquidity management to stay within range.
When creating a V2 pool, you’ll need to:
Select Base and Quote Assets
Base Asset (Token X): The token being priced. Can be any token.
Quote Asset (Token Y): The token used to define the price, limited to major tokens like AVAX, ETH, or USDC for optimal routing and liquidity.
Set Your Bin Step (Bps)
Bins are individual price points where liquidity is concentrated.
Bin Step (Bps) defines the price gap between each bin.
Each pool is made of bins — think of them as containers holding liquidity at fixed prices. The Bin Step determines how wide or narrow the price gaps are between bins:
Example:
20 bps (0.2%)
ARB/USDC Bin 1: $1.21464
ARB/USDC Bin 2: $1.21707
100 bps (0.8%) over 20 bins covers a 22% price range
20 bps (0.2%) over 20 bins covers only a 4% price range
Before launching:
Set the Active Market Price This is crucial — the price you enter will be the starting point for the pool. ✅ Ensure it reflects the actual market price of the asset. ❌ Entering the wrong price can lead to arbitrage losses and unrecoverable funds.
