Single-Sided Liquidity Strategies on Saros
Last updated
Last updated
In most decentralized exchanges, providing liquidity requires contributing both tokens in a trading pair — for example, USDC and SOL. However, Saros DLMM model introduces a more flexible alternative: single-sided liquidity.
With this strategy, you can provide liquidity using only one token, opening up a variety of advanced use cases. Whether you're looking to accumulate a token during price dips, take profits at higher levels, or maintain full exposure to one asset, single-sided strategies give you the tools to manage your capital more efficiently.
This guide walks you through what single-sided liquidity means, how it works on Saros, and how to set it up — including both its advantages and trade-offs.
Single-sided liquidity refers to the process of supplying only one token (e.g., just USDC or just SOL) to a liquidity pool on Saros. Unlike traditional AMMs, which require equal-value deposits of two tokens, Saros enables users to deploy liquidity into specific price bins — and you can choose to place liquidity exclusively on one side of the market.
This is made possible by the DLMM’s bin-based model, which allows for concentrated and asymmetric liquidity placement.
Placing a single side of liquidity using Saros DLMM, would typically give you a shape that looks like one of the below:
Imagine you're holding 500 USDC and want to use it to accumulate SOL — but only if the price drops. Instead of placing a market order or constantly monitoring charts, you can deploy your USDC into the SOL/USDC pool using a single-sided strategy.
You select a price range below the current market (e.g., $120–$135 per SOL), deposit just your USDC, and let the protocol do the rest.
If the market price of SOL falls into that range, your USDC will gradually convert into SOL — often with zero slippage and while earning trading fees from swaps in that bin.
The reverse scenario also applies. If you're holding SOL and want to sell it for USDC at higher prices, you can deposit SOL on the upper price ranges and wait for your desired exit.
Single-sided deployment is useful when:
You have a bullish or bearish bias toward one token
You want to accumulate or exit a position gradually without triggering large price impact
You want to earn fees while waiting for your ideal trade to happen
You want to automate DCA (Dollar-Cost Averaging) into or out of an asset
Stay fully exposed to one asset: Maintain exposure to either the base or quote token without dilution or unintended asset shifts.
Efficient DCA mechanism: Set ranges where your token gradually converts into the other asset as price moves.
Zero slippage conversions: Swaps are routed through bins, enabling exact pricing without price impact.
Earn passive fees: If your single-sided liquidity is in range, you still collect trading fees while awaiting execution.
For example, if you have 100 USDC and want to buy SOL — but only if the price drops — you can deposit your USDC as single-sided liquidity into a lower price range in the SOL/USDC pool.
If the market moves in your favor — meaning the price of SOL falls into your chosen range — your USDC will begin converting into SOL automatically, without any manual trades, slippage, or constant monitoring.
While powerful, single-sided liquidity also comes with some limitations:
Lower fee exposure: Compared to two-sided liquidity, you're only exposed to trades that interact with your chosen price bins, limiting fee-earning opportunities.
Asset volatility remains: You avoid impermanent loss from paired-asset divergence, but you’re still exposed to the market fluctuations of the single token you deposit.
Requires active monitoring or automation: If your goal is token accumulation or exit, you may want to withdraw once the conversion happens — or use Limit Orders on Saros to automate the process.
Deploying single-sided liquidity on Saros is straightforward. Here's a step-by-step guide:
On the homepage select Pool on the header. Select the pool that you want to add liquidity.
Select the token you want to deploy (e.g., USDC or SOL). Enter the desired amount in the input field. Leave the second token field empty.
Choose from the available Shapes:
Spot for flat exposure
Curve for gradual accumulation
Bid-Ask for directional positioning
Each Shape is optimized for different market behaviors.
Use the slider or manual input to set your desired price range. To deploy a single-sided position:
For USDC aiming to buy SOL, set your range below the current price
For SOL aiming to sell into USDC, set your range above the current price
Ensure both ends of your price range fall on the same side of the active bin.
Review your parameters and click “Deploy Liquidity.” Confirm the transaction in your connected wallet. On Solana, this is typically confirmed in seconds and with minimal fees.
Once your liquidity is active:
Track the status and composition of your position
Set up Limit Orders on Saros to automatically withdraw liquidity once a certain condition is met (e.g., full conversion to the desired token)
Here are a few common use cases you can implement on Saros:
Accumulate SOL on dips: Deposit USDC into a lower price range (e.g., $115–$130) and wait for market action
Take profits into USDC: Deposit SOL into an upper range (e.g., $160–$180) if you expect a price pump
Market-neutral entry strategy: If you're unsure about short-term direction, you can split capital into two separate single-sided positions — covering both a dip and a rally
Participating in liquidity provision—regardless of strategy—comes with inherent risks. These include, but are not limited to:
Impermanent Loss (IL) when asset prices diverge
Smart contract vulnerabilities
Systemic or platform-related failures
Market volatility and liquidity crunches
Regulatory shifts
Human or operational errors
There are no guarantees in DeFi, and you should only provide liquidity with capital you can afford to lose. If you're unsure, always seek advice from a qualified financial professional.
