Permissionless Saros DLMM Pools

In this article you can learn how to open a new liquidity pool and also understand the difference between AMM mode and DLMM model.

Creating a New Liquidity Pool with Saros DLMM

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.

Step 1: Open a Pool

Go to the Pool page and click "Create New Pool.

V1 vs. V2: What’s the Difference?

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.

Step 2: Configure Your V2 Pool

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.

Understanding Bin Steps (Bps)

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

For new tokens, a higher Bin Step (wider price gaps) may simplify liquidity management and reduce the need for frequent rebalancing.

---

Step 3: Finalize & Launch Your Pool

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.