Advanced Liquidity Strategies on Saros

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.

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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.