Saros
  • SAROS
  • SAROS DLMM
  • SAROS AMM
  • SAROS PERPS
  • SAROS MOBILE APP
  • SAROS DLMM
    • Onboarding and Guides
      • Saros DLMM: Introduction
      • Liquidity Lifecycle: Deployment, Management & Rebalancing
      • Permissionless Saros DLMM Pools
      • Understanding Your Risks as a Liquidity Provider on Saros DLMM
    • Shapes and Strategies
      • Liquidity Shapes
      • Getting Started with Basic Liquidity Strategies
      • Advanced Liquidity Strategies on Saros
      • Managing Out-of-Range Liquidity on Saros
      • Single-Sided Liquidity Strategies on Saros
    • Rewards
      • Concentrated Incentives (CI) on Saros
    • Technical Design
    • Technical Guides
      • Add liquidity
      • Create a pair
      • User Position
      • Swap tokens
      • Removing Liquidity
  • SAROS MOBILE APP
    • Mobile App
      • How to install Saros Super App
      • How to set up Saros Super App
      • How to add a new Hot Wallet
      • How to add View-only wallet
      • How to log in to Social Account
      • How to manage wallets
      • How to send or receive a token
      • How to send or receive NFTs
      • How to send multiple NFTs to an address
      • How to swap tokens
      • How to add a custom token
      • How to manage tokens
      • General Settings
      • How to use DApp browser
      • How to turn on Biometric and change Passcode
      • Migrate Ramper V2 on Super App
      • How to use Discover
      • How to buy crypto
    • Extension
      • How to install Saros Wallet Extension
      • How to set up Saros Extension Wallet
      • How to add a new Hot Wallet on Saros Extension
      • How to Add view-only wallet
      • How to manage wallets
      • How to send or receive a token
      • How to send or receive NFTs
      • How to add a custom token?
      • How to manage tokens
      • General settings
      • How to change the password?
      • Migrate Ramper V2 on Extension
      • How to log in to Social Account
      • How to use Discover
      • How to buy crypto
      • How to send multiple NFTs in one transaction with Multisend
      • How to Manage Notifications
      • How to swap on Saros Extension
      • Action on X
    • FAQs
  • SAROS AMM
    • SarosSwap
      • How To Swap on SarosSwap
    • SarosFarm
      • How to Add Liquidity
      • How to Remove Liquidity
      • How to Farm on SarosFarm
      • How to Claim the Reward
    • SarosStake
      • How to stake
      • How to unstake
      • How to harvest
    • SarosSnapShot
    • SarosPerpetual
      • Trading Basics
      • Getting Started
      • Deposit/Withdraw
      • Order Management
    • FAQs
      • Is Saros safe? Has Saros been audited?
      • Why did my transaction fail?
      • How to resolve the "No wallet" error when connecting wallet to Saros Finance
      • What is the difference between APY and APR?
      • How to get farming pool Txid
      • What are liquidity provider tokens?
      • When will you open more pools?
      • What wallets can I use with Saros? How do I connect my wallet to Saros?
      • My LP tokens aren’t showing up on the site or in my wallet?
      • How do I get airdrops?
      • Can I use Saros on my phone?
      • What is price impact?
      • What is slippage tolerance? How can I adjust it when swapping?
      • What fees do I pay when I exchange tokens?
      • Are there any fees associated with the SarosFarm?
      • How to calculate and distribute the reward on SarosFarm?
      • Can I withdraw my liquidity anytime?
      • Where can I check Saros Analytics?
      • I can't find an answer for my question. Where do I find an answer?
      • How could I report a bug?
      • How to check wallet information on Saros
    • Go to DEX
  • SAROS GARDEN
    • Introduction
    • How to stake on Saros Garden
    • How to unstake from Saros Garden
  • ALL ABOUT $SAROS
    • Saros Token ($SAROS)
  • INTEGRATION
    • Saros Super App
    • Saros DEX
  • Saros DLMM
  • LEGAL
    • TERMS OF SERVICE
    • Privacy Policy
  • AUDITS
    • SarosSwap
    • SarosFarm & SarosStake
  • OFFICIAL LINKS
    • Saros Community
    • Brand Assets
Powered by GitBook
On this page
  • How liquidity providers generate returns?
  • When and how to adjust your positions
  • What are some considerations when re-balancing?
  • Deploy Liquidity in 5 Simple Steps
  • Adding Liquidity: Step by Step Guide
  • Batch Liquidity Deployment
  • Removing Liquidity
  • Risks of Managing Liquidity
  1. SAROS DLMM
  2. Onboarding and Guides

Liquidity Lifecycle: Deployment, Management & Rebalancing

PreviousSaros DLMM: IntroductionNextPermissionless Saros DLMM Pools

Last updated 16 days ago

Contents

  • Overview of each step to deploy liquidity

  • Access detailed documentation on liquidity strategies

How liquidity providers generate returns?

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.

When and how to adjust your positions

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.

What are some considerations when re-balancing?

  • 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.

Deploy Liquidity in 5 Simple Steps

Add liquidity in just five easy steps or keep scrolling for the detailed walkthrough.

Adding Liquidity: Step by Step Guide

  1. Select a Liquidity Pool: On the Pools page, search for the pool you want to provide liquidity to.

  2. 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.

  3. 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.

  4. 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.

Batch Liquidity Deployment

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.

Removing Liquidity

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.

Risks of Managing Liquidity

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.

How liquidity providers generate returns?
When and how to adjust your positions
Step by Step Guide to deploy liquidity
Batch deployment feature (deploy any range you want)
Removing your liquidity