DLMM Explained: What You Need to Know Before Trading New Tokens

What is DLMM?

DLMM stands for Dynamic Liquidity Market Maker - a trading model that powers decentralized token swaps. Instead of using the order book system like traditional CEXs (Centralized Exchanges) or the basic AMM (Automated Market Maker) models, DLMM gives users a better way to trade and earn.

Think of DLMM as a smart engine that connects people who want to trade and people who provide tokens for others to trade. These token providers are called liquidity providers, and they help make sure there is always enough supply for trading.

Don’t confuse DLMM with a launchpad or token sale. DLMM is the technology layer that powers the actual trading. In the case of Genesis Launch, Coin98 connects users with new tokens, while Saros DLMM handles the trading side.

Why should you care about DLMM?

Knowing how DLMM works helps you better understand what’s happening when a new token goes live.

Here’s why that matters:

Zero-slippage swaps: the price you see is the price you get.
Open market pricing: prices are based on supply and demand.
Earning potential: you can become a liquidity provider and earn fees.
More control: no waiting, no middlemen.

If you expect the price to stay stable, but liquidity is low or demand is high, the price can still move fast. That’s not a bug, it’s how open markets work, and DLMM just makes that process faster and more capital-efficient.

How DLMM works

Let’s break down how DLMM actually works in simple terms. Here are the main pieces:

Concentrated Liquidity

Instead of spreading tokens evenly across all price levels, DLMM allows providers to focus their liquidity in specific price ranges. That means better pricing and higher efficiency, especially during times of high trading activity.

Surge Pricing

DLMM uses a smart fee model. When markets get more volatile, swap fees automatically increase. This helps discourage wild trading and rewards liquidity providers for taking on more risk.

Bin Architecture

This is what makes DLMM unique. Liquidity is separated into "bins" - each one holds tokens for a specific price level. When you trade, your order goes directly into the correct bin. That’s how DLMM can offer zero-slippage swaps, since there’s no shifting token ratio like in traditional AMMs.

In short, DLMM is built to:

Make trading smoother
Increase LP returns
Keep markets stable even when demand surges

Trading with DLMM on Coin98

You don’t need to understand all the tech to start using DLMM - that’s where Coin98 Super Wallet comes in. It integrates directly with Saros DLMM so that you can trade simply, right from your phone.

Here’s how:

Open Coin98 Super Wallet (make sure your app is updated to the latest version)
Navigate to SwapX
Choose your tokens and enter the amount you want to swap
Review the price, confirm, and approve the transaction

About Coin98 Super Wallet

Coin98 is an open, decentralized, and secure DeFi and AI wallet that provides the essential tools and infrastructure for everyone to enter and participate in any opportunities on the Open Internet, so they can build and shape their own future.