How to Add and Remove Liquidity on Saros DLMM

This guide provides a detailed guide for adding and removing liquidity on the Saros DLMM.

Adding liquidity to a Saros DLMM pool allows you to earn trading fees, while removing liquidity gives you flexibility to adjust your strategy or exit a position. The bin-based architecture enables you to customize liquidity distribution using various shapes (Spot, Curve, Bid-Ask).

Important notes:

• Liquidity Shapes: Try different liquidity shapes depending on the market situation and your risk tolerance. Read about Shapes and Strategy to understand it for your selection.

• Active Bin is the current price range where trading is happening, where your liquidity must be positioned to earn fees. Rebalance if the market price changes significantly. Read more about Manage Out-of-Range Liquidity

• Fees and APR: Monitor the Fee (24H) and Apr (24H) to assess potential returns.

• Risks: Understanding your risks such as impermanent loss, smart contract risks, and market volatility. Only use funds you can afford to lose.

Set up Solana Wallet

At the moment, you can connect to Saros DLMM using Coin98 Super Wallet.

You need to download and set up a Multichain or Solana wallet: guide on download and set up Coin98 Super Wallet

Gas fee and SPL standard

• It should be noted that Saros DLMM is on the Solana network, which means that you can only swap tokens in SPL standard. Saros DLMM uses SOL (SPL standard) as transaction fees. Therefore, you should prepare SOL before any transactions on Saros.

• Prepare the tokens in your wallet for the pool you intend to interact with

How to Add Liquidity

Step 1: Access the Saros DLMM Pool via https://dlmm.saros.xyz/pool or switch to the Pool tab on the menu bar.

Step 2: Click on Connect Wallet at the top right corner and choose your wallet (Coin98) and proceed to connect.

Step 3: On the Pool page, use the search bar to find your desired pool or scroll to select it, then click the pool name to enter its detailed page.

Example: The SOL/SAROS pool

Step 4: On the pool’s detailed page, locate the Add Liquidity section on the right and fill in the information

1. Enter the amount of the tokens that you would like to add liquidity. Start with a small amount to familiarize yourself with the process.

2. Choose a Liquidity Shape

   • Spot: Equal distribution across the price range

   • Curve: Concentrated around the current price, gradually tapering off at the edges.

   • Bid-Ask: Focused at both ends of your selected range, leaving the middle relatively empty.

3. Set the price range (min and max price) using the sliders; or you can specify the Num Bins (number of bins) to divide your liquidity across.

You can click Reset Price to return to the default setting - the widest range (63 bins)

1. Check the Simulated Liquidity Distribution graph to see your liquidity spread across the price range.

Ensure the distribution matches your strategy before proceeding.

Step 5: Click on Add Liquidity button to submit your deposit and approve the transaction in the popup.

Once confirmed, your liquidity position will be updated under the Deposit Balance part on the left side.

How to Remove Liquidity

Step 1: Access the Saros DLMM Pool via https://dlmm.saros.xyz/pool or switch to the Pool tab on the menu bar and connect the wallet

Step 2: On the pool’s detailed page, find your liquidity position under Deposit Balance and switch to the Remove Liquidity tab.

Step 3: Select the option to remove

1. Remove both tokens

2. Remove only the first token

3. Remove only the second token

Note: For options 2 and 3, you will remove tokens from bins with prices higher than that of the active bin. Your tokens in the active bin will remain in the pool.

Step 4: Click the Remove Liquidity button and approve the transaction in the popup.

Once completed, the tokens will be returned to your wallet, and your position will be updated under the Deposit Balance part on the left side.