Overview

This is a quick overview of DLMM for developers to grasp the key concepts before moving on to other sections. More detailed information about the DLMM protocol is provided in this section.

What is DLMM?

DLMM is a bin-based liquidity protocol that divides the price space into discrete bins. Each bin represents a specific price point where liquidity can be deposited. Unlike continuous price ranges, DLMM uses a discretized approach for more efficient liquidity management.

Key Features

Bin-Based Liquidity

  • Liquidity is concentrated in discrete price bins

  • Each bin has a unique ID representing a specific price

  • Bins are connected with fixed price steps

Zero Slippage Within Bins

  • Trades within the same bin execute at a constant price

  • No price impact until bin liquidity is exhausted

  • Predictable execution for traders

Flexible Liquidity Shapes

  • Spot: Uniform distribution around current price

  • Curve: Gaussian distribution for concentrated liquidity

  • Bid-Ask: Weighted distribution for market making

Composable Positions

  • Each position is an NFT

  • Add/remove liquidity to specific bins

  • Multiple positions per user

Next Steps

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