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
  • Strategy 1: Tiered Limit Placement
  • Strategy 2: Peg Divergence Opportunities
  • Strategy 3: DCA-Integrated Liquidity
  • Strategy 4: Smart Entry & Exit
  • Strategy 5: Liquidity Walls
  • Understanding the Risks
  1. SAROS DLMM
  2. Shapes and Strategies

Advanced Liquidity Strategies on Saros

PreviousGetting Started with Basic Liquidity StrategiesNextManaging Out-of-Range Liquidity on Saros

Last updated 16 days ago

Saros DLMM is built for flexibility — allowing you to create custom liquidity setups using Shape-based provisioning. If you’re already familiar with basic liquidity concepts and want to explore how to go further, this guide walks you through several advanced strategies that can help you better manage risk, optimize returns, and shape market behavior.

Strategy 1: Tiered Limit Placement

For active liquidity providers looking to scale in or out of positions, deploying multiple limit shapes at key price intervals offers tactical flexibility. This method suits users who treat liquidity as a dynamic trading tool rather than a passive income stream.

You define price ranges, set the distribution, and let the Shape structure handle the execution.

Strategy 2: Peg Divergence Opportunities

When stablecoins drift from their intended peg, Saros lets you capture that volatility. By placing liquidity slightly above and below the peg, you can earn fees while others wait for the market to rebalance.

This approach works whether you're anticipating a temporary misalignment or simply want to stay exposed to short-term volatility.

Strategy 3: DCA-Integrated Liquidity

Saros Shapes support strategies that combine Dollar Cost Averaging with fee generation. For example, you can structure wide-range liquidity to earn fees while limit orders wait at lower levels to buy dips.

This is ideal for long-term participants who want both exposure and efficient capital usage over time.

Strategy 4: Smart Entry & Exit

Looking to buy or sell large amounts over time without slippage? You can use Curve or Bid-Ask shapes that allow liquidity to gradually fill your orders at optimal prices.

Want even more control? Convert the Shape to a limit order, so once your target price hits, the position exits automatically.

Strategy 5: Liquidity Walls

Use one-sided Spot Shapes to set up strong liquidity zones — either as buy walls (support) or sell walls (resistance). These can be tactical points where you accumulate fees or place directional bets.

Protocols can also use this structure to create automated buyback zones and price floors for their tokens, adding stability to the market.


Understanding the Risks

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.