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Day 1 — Introduction & DLMM Basics

Introduction & Core DeFi Concepts

Bootcamp Overview

Session led by instructors Pesal and Megumi, emphasizing that all material is for educational purposes and not financial advice.

Key Terminology

DLMM vs. Standard AMM

Unlike Standard AMMs, the DLMM (Dynamic Liquidity Market Maker) allows for concentrated liquidity, making capital usage more efficient for LPs.

flowchart LR
    A["Standard AMM"] --> B["Liquidity spread<br>across entire curve"]
    A --> C["Less capital<br>efficient"]
    A --> D["Simple to use"]
    
    E["DLMM"] --> F["Concentrated<br>liquidity in bins"]
    E --> G["Higher capital<br>efficiency"]
    E --> H["Strategic<br>positioning"]
    
    style A fill:#e68619,color:#fff
    style E fill:#2d7d46,color:#fff

DLMM Mechanics: Bins & Bin Steps

Understanding Bins

Liquidity in DLMM is stored in Bins, which are specific price containers. Users can hold liquidity in these bins whether the current price is active there or not.

Key characteristics:

flowchart TD
    A["Price Range"] --> B["Bin 1<br>$95"]
    A --> C["Bin 2<br>$100"]
    A --> D["Bin 3<br>$105"]
    A --> E["Bin 4<br>$110"]
    
    C -.-> F["Active Bin<br>⚡ Earning Fees"]
    B -.-> G["Below Price<br>Holds Token"]
    D -.-> H["Above Price<br>Holds SOL"]
    E -.-> H
    
    style C fill:#2d7d46,color:#fff
    style B fill:#1473e6,color:#fff
    style D fill:#e68619,color:#fff
    style E fill:#e68619,color:#fff

Bin Steps Explained

The Bin Step is the percentage difference in price between two consecutive bins, defining the granularity of the price range.

Impact of Bin Size

Liquidity Distribution Types

When providing liquidity, you choose how to spread it across the price range. There are three basic distribution shapes:

1. Spot Distribution

2. Curve Distribution

3. Bid-Ask Distribution

flowchart LR
    A["Spot"] --> A1["Even spread"]
    B["Curve"] --> B1["Tight focus"]
    C["Bid-Ask"] --> C1["Directional"]
    
    style A fill:#1473e6,color:#fff
    style B fill:#2d7d46,color:#fff
    style C fill:#e68619,color:#fff

Note: Day 1 covers advanced strategies that use these distributions in combination with market analysis.

Impermanent Loss (IL)

The goal is to generate enough trading fees from volume to outweigh the temporary loss in asset value caused by price divergence.

Key concept: IL is not realized until you withdraw liquidity. The position value changes as prices move, but fees accumulate to offset this.

Profitability Focus

To be a profitable LP:

flowchart LR
    A["LP Position"] --> B["Price Volatility<br>↕"]
    B --> C["Impermanent Loss<br>⚠"]
    
    A --> D["Trading Volume<br>📈"]
    D --> E["Fee Income<br>💰"]
    
    C --> F{"Fees > IL?"}
    E --> F
    
    F -->|Yes| G["✅ Profitable<br>Position"]
    F -->|No| H["⚠ Losing<br>Position"]
    
    style G fill:#2d7d46,color:#fff
    style H fill:#c9252d,color:#fff
    style E fill:#2d7d46,color:#fff
    style C fill:#e68619,color:#fff

Platform Tour & Practical Walkthrough

Meteora Interface Overview

The Meteora app provides several key features for liquidity provision:

Quick Entry: Lightning Button

Opening a Position

Step-by-step process:

flowchart TD
    A["Start"] --> B["Connect Wallet<br>Phantom, Solflare, etc."]
    B --> C["Select Trading Pair<br>e.g., SOL/USDC"]
    C --> D["Choose Bin Step<br>Price granularity"]
    D --> E["Set Deposit Amount<br>Token quantity"]
    E --> F["Select Distribution<br>Spot/Curve/Bid-Ask"]
    F --> G["Single or Dual Side?"]
    
    G -->|Single-sided| H["Deposit SOL only<br>or Token only"]
    G -->|Dual-sided| I["Deposit both<br>SOL + Token"]
    
    H --> J["Review & Confirm"]
    I --> J
    J --> K["Position Active<br>⚡ Earning Fees"]
    
    style A fill:#888,color:#fff
    style K fill:#2d7d46,color:#fff
  1. Connect wallet — Link your Solana wallet (Phantom, Solflare, etc.)
  2. Select pair — Choose trading pair (e.g., SOL/USDC)
  3. Choose parameters:
    • Bin Step (price granularity)
    • Deposit amount
    • Liquidity distribution shape
  4. Confirm transaction — Review and approve

Single-Sided Liquidity

A key feature that allows providing liquidity with only one token:

Benefits:

Example: If you’re bullish on a token but it’s currently at a low price, deposit SOL only. As price rises, your SOL gradually converts to the token.

Token Safety Basics

Before providing liquidity to any pool, always research the token first. This is critical to avoid scams and rug pulls.

Essential Safety Checks

  1. Verify the contract address — Always check official sources (website, Twitter, CoinGecko)
  2. Scan for security issues — Use tools like Rugcheck.xyz
  3. Check holder distribution — Use Bubblemaps to spot suspicious concentration
  4. Look for organic volume — Avoid sudden spikes that disappear

Quick Red Flags

Golden Rules for Beginners

  1. Start small — Test with amounts you’re comfortable losing
  2. Avoid FOMO — Don’t chase pumps without analysis
  3. Stick to established tokens first — SOL/USDC and major pairs are safer for learning
  4. Monitor your positions — Check daily, especially when learning

Note: Day 1 provides detailed security workflows, token vetting processes, and advanced risk management strategies.

Resources & Community

Join the Community

Next Steps

  1. Complete daily bootcamp sessions
  2. Practice with small positions first
  3. Join Discord channels for ongoing support
  4. Apply strategies incrementally as you learn