DLMM CHEAT SHEET

Formulas · Strategies · Bin Steps · IL Table · Risk Rules · Setup Checklist
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1. Core Formulas

Constant Product (AMM)
x · y = k
x = token A in pool, y = token B in pool, k = constant. Buying drains A → price rises. Selling adds A → price falls. Ch 5
AMM Price
P = y / x
Price of token A in terms of token B. When you buy A, x ↓ so P ↑. When you sell A, x ↑ so P ↓. Ch 5
DLMM Dynamic Fee
Fee = base + variable
Base fee: floor set at pool creation. Variable fee: rises with volatility and bin-crossing. Capped at 10% max. Ch 10
Impermanent Loss
IL = 1 − HODL_value / LP_value
Compare what you'd have by holding vs what your LP position is worth. Positive IL = LPing underperformed. Ch 7
True LP Profit
Profit = (Withdrawal Value + Fees Claimed) − Gross Deposit
Always compare to HODL Profit = HODL Value − Gross Deposit. If LP Profit > HODL Profit → you won. Ch 14
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2. Impermanent Loss Table

Price Change IL (% vs HODL) Risk Level Verdict
1.25× (+25%) ~0.6% LOW Easily covered by fees
1.50× (+50%) ~2.0% MILD Moderate fees needed
2.00× (+100%) ~5.7% MODERATE High fees required
3.00× (+200%) ~13.4% HIGH Difficult to offset
5.00× (+400%) ~25.5% VERY HIGH Rarely profitable
10.0× (+900%) ~42.5% EXTREME Almost always net loss
💡 IL applies in BOTH directions — price going up OR down.
0.6%
2.0%
5.7%
13.4%
25.5%
42.5%
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3. Bin Step Selection Guide

Bin Step Gap (at $200) Best For Precision
1 bps (0.01%) $0.02 Stable pairs (USDC-USDT) ULTRA HIGH
10 bps (0.10%) $0.20 Major pairs (SOL-USDC) HIGH
20 bps (0.20%) $0.40 Popular choice, balanced MODERATE
25 bps (0.25%) $0.50 Moderate volatility MODERATE
50 bps (0.50%) $1.00 Beginner-friendly LOWER
100 bps (1%) $2.00 Volatile pairs LOW
400 bps (4%) $8.00 Extreme volatility MINIMAL
Rule of thumb: Smaller bin step = tighter price, more capital efficient but goes out-of-range faster. Start with 20–50 bps. Move tighter as you gain experience.
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4. Strategy Decision Tree

Q1: What kind of pair?
Stable→Stable Major Pair Volatile/Meme New Token
Q2: How much time can you commit?
Weekly Daily Active/Hours
Q3: What's your market view?
Range-bound Going UP 📈 Going DOWN 📉 No Idea 🤷
Strategy Pair Time View Risk
WIDE/CHILL Any Weekly No idea Low IL, Low fees
SPOT Major Daily Range-bound Moderate
CURVE Stable Hours Very stable High IL if wrong
BID-ASK Major/Vol Daily+ Directional Directional risk
20-BIN Major/Vol Active High volume Active mgmt needed
SINGLE-SIDED Any Days/Weeks Target price Zero IL, opp. cost
🎯 FOR BEGINNERS: SOL-USDC + SPOT + 20–50 BINS + DAILY CHECK = SAFEST STARTING POINT
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5. Wallet Setup Checklist

  1. Install Phantom/Solflare/Backpack wallet (phantom.app)
  2. Write seed phrase on PAPER — never screenshot, never digital
  3. Set strong password — 12+ chars, unique
  4. Buy SOL from exchange (Binance, Coinbase, etc.)
  5. Withdraw SOL to wallet address (check "Receive" in Phantom)
  6. Swap some SOL for USDC via Jupiter (jup.ag) inside wallet
  7. Keep ~0.01 SOL for gas (~$2 at $200/SOL — covers 5,000+ txs)
  8. Go to app.meteora.ag → Connect Wallet → Phantom
  9. Search SOL-USDC pool with 20–50 bps bin step
  10. Create position: Spot strategy, ±10% range, $20–50 first deposit
  11. Bookmark position URL — take screenshot of pool address
  12. Note entry SOL price — your reference for measuring IL later
✅ MIN START: $20–50
⛽ TX COST: ~$0.0002
🕐 TIME: ~5 min
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6. Risk Management Rules

#1
Check Total Fees First
Never LP a pool with <25 SOL total fees generated. Low fees = low genuine volume or fake activity.
#2
Vet the Token
Check Rugcheck.xyz + Bubblemaps. If 3 wallets hold 90% supply → RUN.
#3
Start Small
First position = money you can lose entirely. Treat it as tuition. Learn the mechanics before scaling.
#4
Don't Chase Extreme APR
1000% APR = usually temporary hype, hidden risk, or IL waiting to wreck you.
🚨 When to Exit Immediately
Trigger Action
Token rugging (sudden 90%+ drop) CLOSE NOW
Pool abandoned (no trades for days) WITHDRAW
Fee APR <5% for >1 month CONSIDER EXIT
IL growing for weeks, no reversal REVIEW
Volume declining month over month MONITOR
🩺 Monthly LP Health Check
① Tracking PnL honestly? (HODL comparison)   ② Strategy still right for market?   ③ Checking at right frequency?   ④ Fees worth the time spent?   ⑤ Do you understand WHY you performed that way?
⚡ GOLDEN RULE: LPing is NOT free money. You are selling volatility and getting paid in fees.
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7. Essential Tool URLs

Tool Purpose URL
Meteora dApp Position dashboard app.meteora.ag
Birdeye Token charts & analytics birdeye.so
DEX Screener Real-time DEX data dexscreener.com
Jupiter Best swap prices jup.ag
Rugcheck Token safety verification rugcheck.xyz
GMGN Memecoin & wallet tracking gmgn.ai
LP Army Community & strategies lparmy.com
Meteora Docs Official documentation docs.meteora.ag
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8. Range Width & Maintenance

Range Width Risk Level Check Frequency Best Strategy
±2–5% HIGH Multiple × / day Curve
±5–15% MEDIUM Every few days Spot, Bid-Ask
±15–25% LOW-MED Weekly Spot-Spread, 20-Bin
±20–30%+ LOW Weekly+ Wide/Chill
BUDGET $20–50 = ±20% WIDE
BUDGET $200+ = ±10% SPOT
BUDGET $1000+ = ±5% CURVE
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9. Position Monitoring Schedule

🕐 Daily (30 sec)
▶ Is position in range?
▶ Price close to boundary?
▶ How much fees today?
0.1% daily = ~36% annualized
📅 Weekly (5 min)
▶ Position PnL vs HODL
▶ Fee APR (fees × 52 ÷ value)
▶ Price trend direction
▶ Volume trend rising/falling
▶ IL magnitude check
🗓️ Monthly (10 min)
▶ Honest PnL audit
▶ Strategy still appropriate?
▶ Risk/reward rebalancing
▶ Time spent vs fees earned
▶ Do you understand your results?
Meteora DLMM Cheat Sheet — from Meteora DLMM: The Complete Guide for Absolute Beginners — Print & Keep Handy