Saros DLMM: Introduction
Last updated
Last updated
Welcome to Saros DLMM (Dynamic Liquidity Market Maker) - the engine that powers the Internet Financial Market on Solana. Think of it as the facilitator for all of your trades behind the scenes.
Instead of using complicated order books like traditional CEXs or slippage-bearing models of AMMs, Saros DLMM runs on Liquidity Book technology - with pools of tokens provided by users (like you!). These pools make it fast and seamless for anyone to trade directly on Solana - no middlemen, just pure DeFi power.
Saros DLMM isn’t just about speed. It’s also built to make trading more efficient and rewarding for liquidity providers — the people who help power the system by adding their tokens to these pools. It’s like earning fuel points every time someone uses the gas you pumped.
Whether you're new to DeFi or already a seasoned pro, Saros DLMM offers a smoother, smarter way to trade and earn.
Ready to dive deeper? Check out our full guide to learn more!
Saros DLMM isn't just a trading platform—it's a feature-rich hub crafted to enhance the experience for both traders and liquidity providers. Let's delve into some of its standout features:
Concentrated Liquidity: Enhance Your Capital Utilization
Surge Pricing: Liquidity Providers earn more
Bin Architecture: Flexible Liquidity Management
Zero-slippage Swaps: Get the best trading rates for traders.
Unlike traditional AMMs that distribute liquidity across broad price ranges, Saros DLMM enables providers to concentrate capital within targeted price bands. This boosts capital efficiency, allowing for larger trades with reduced slippage. As a result, traders benefit from more stable pricing, while liquidity providers can earn higher fees.
Saros DLMM features a dynamic surge pricing model that adjusts swap fees in real-time based on market volatility. During periods of high price fluctuation, trading fees increase slightly and disincentivize excessive trading while liquidity providers are compensated with higher returns, helping to mitigate risks such as impermanent loss and incentivizing deeper liquidity provisioning when it’s most needed.
Saros DLMM introduces a unique bin-based system, where liquidity is divided into discrete pools at fixed price levels. Each bin represents liquidity at a specific price point, and together, they form a full liquidity pool. This structure minimizes price impact during trades, leading to better execution for traders. For liquidity providers, it enables precise, strategy-driven fund allocation and maximizing returns by aligning with market movements.
In traditional AMMs, asset prices shift based on pool composition — each trade alters the ratio, causing price movement. As a result, buyers push prices up and sellers push them down, leading to slippage — where the final trade price differs from the quoted one.
With Saros DLMM’s bin architecture, swaps are executed at fixed price levels, enabling zero slippage. This means the price you see is the price you get, allowing for more accurate, efficient, and predictable trading.
