Meteora
  • Meteora: The most dynamic and sustainable liquidity layer on Solana
  • PRODUCT OVERVIEW
    • Meteora Liquidity Pools
      • DLMM Overview
        • What is DLMM?
        • DLMM Program
        • Dynamic Fees
        • Strategies & Use Cases
        • DLMM Farming Rewards
      • DLMM Launch Pool Overview
      • Dynamic AMM Overview
        • What is a Dynamic AMM Pool?
        • Dynamic AMM LP Fee and APY Calculation
        • Creating a Dynamic AMM Pool via the UI
        • Claiming Fees from Permanently Locked Liquidity
        • Dynamic AMM Stable Pools
        • Dynamic LST Pools
        • Additional yield from Dynamic Vaults
        • Dynamic AMM Farm Overview
      • DAMM v2 Overview
      • Memecoin Pool Overview
        • Memecoin Pool v2
          • What is Memecoin Pool v2?
        • Memecoin Pool v1
          • What is Memecoin Pool v1?
          • Permanently Locking Liquidity
      • Stake2Earn Pool Overview
        • What is a Stake2Earn Pool?
        • Stake2Earn for Launchpads
      • Multi-Token Stable Pool Overview
    • Alpha Vault Overview
    • Dynamic Vault Overview
      • What is a Dynamic Vault?
      • Dynamic Vault Program
      • Hermes - Meteora's Keeper
        • Algorithm to find optimal yield allocations
        • Rebalance crank
        • Operation fee calculation
      • Design Goals
      • Security
      • Dynamic Vaults Whitepaper
      • Dynamic Vaults Community Explainers
      • Affiliate Program for Dynamic Vault
        • Become an Affiliate Partner (Dynamic Vaults)
    • Dynamic Bonding Curve (DBC) Overview
      • What is the Dynamic Bonding Curve?
      • Customizable Pool Configuration
      • Bonding Curve Formula
      • DBC Migrator Keeper
    • Meteora’s Anti-Sniper Suite
  • INTEGRATION
    • DLMM Integration
      • DLMM SDK
        • DLMM TypeScript SDK
        • CPI Examples
      • DLMM API
      • Fetching information on locked liquidity in a DLMM
    • Dynamic AMM Pool Integration
      • Dynamic AMM SDK
        • Dynamic AMM TypeScript SDK
        • CPI Examples
      • Dynamic AMM API
        • Pool Info
        • Pool State
      • Setting Pool and Fee Config for Dynamic AMM Pools
      • Create Dynamic Pool with Timestamp/Slot Activation
      • Dynamic AMM - Farm Integration
    • DAMM v2 Integration
      • DAMM v2 SDK
        • DAMM v2 TypeScript SDK
        • DAMM v2 Rust SDK
      • Setting Pool and Fee Config for DAMM v2
      • Technical FAQ
    • Memecoin Pool Integration
      • Memecoin Pool v2 Integration
        • Setting Pool and Fee Config for Memecoin Pool v2
      • Memecoin Pool v1 Integration
        • TypeScript Code Examples
        • CPI Examples
        • Setting Pool and Fee Config for Memecoin Pool v1
        • Track permanently-locked liquidity in Memecoin Pool v1
        • Track Protocol Fee from swaps in Memecoin Pool v1
    • Stake2Earn Pool Integration
    • Dynamic Vault Integration
      • Using TypeScript-Client
      • Using Rust-Client
      • Using CPI
      • Vault API
        • Vault Info
        • Vault State
      • Vault Developer Resources
    • Alpha Vault Integration
      • Alpha Vault TypeScript SDK
      • Alpha Vault without Whitelist Setup
      • Alpha Vault with Whitelist Setup
    • Dynamic Bonding Curve (DBC) Integration
      • DBC SDK
        • DBC TypeScript SDK
        • DBC Rust SDK
      • DBC Fee Scheduler Formula
      • Program Repo
      • Technical FAQ
  • TOKEN LAUNCH POOLS
    • Steps to Create a Pool for a Token Launch
      • Create: DLMM Launch Pool
      • Create: Dynamic AMM Pool
      • Create: Memecoin Pool v1
      • Create: Stake2Earn Pool
      • Create: Pools with Alpha Vault
        • Create: DLMM Launch Pool with Alpha Vault
        • Create: Dynamic AMM Pool with Alpha Vault
        • Create: Memecoin Pool with Alpha Vault
        • Create: Stake2Earn Pool with Alpha Vault
    • Anti-Sniper Fee Suite for a Token Launch
  • Resources
    • Audits
    • Meteora Program IDs
    • Meteora APIs
    • Devnet Testing
    • Community Data Dashboards & Tools
    • Meteora Brand Assets
    • THE MASSIVE METEORA STIMULUS PACKAGE
      • Overview
      • 1. Dynamic Liquidity Market Maker (DLMM)
      • 2. Formation Of An LP Army DAO
      • 3. The 10% Stimulus Proposal
  • USER FAQ
    • Getting Started LPing
      • Supported Wallets
      • Prepare SOL
      • SOL required for Rent
      • What is Wrapped SOL?
      • What is an AMM?
      • What does it mean to provide liquidity?
      • How to swap to the tokens required for adding liquidity to a pool
      • How to quickly check if a token has any risks
      • Viewing your transaction history
      • My wallet has been compromised. What should I do?
    • Differences between DLMM and Dynamic Pools
    • DLMM FAQ
    • Dynamic AMM FAQ
      • How is the pool price of the token calculated in a Dynamic AMM?
      • What is a Meteora LP token?
      • How do I see fees earned on a Dynamic AMM Pool?
      • How to track your earnings for a Dynamic Pool?
      • What is Virtual Price in a Dynamic Pool?
      • How do LP tokens, fees, and virtual price work for Dynamic Pools?
      • Why must I add liquidity in non-stable Dynamic Pools using a 50:50 value ratio?
      • What is AMP in a Dynamic Pool with stable coins?
      • Why is the USDT-USDC pool not 1:1 in ratio of assets?
      • Can I create an LST, FX, or Multi-token pool using the Dynamic Pool creation tool?
    • Alpha Vault FAQ
    • Why is the token sometimes not picked up and tradable on Jupiter?
    • How do I create a new farm?
    • Video Tutorials to Get Started
      • LP Army Boot Camp
      • DLMM Strategy Sessions / Jam Sessions
  • Security and Risks
    • Risk of Impermanent Loss (IL)
    • Risk of depositing into an imbalanced pool / pool with price out of sync
    • Smart contract risk
    • Risk of a stablecoin depeg
    • Operational risk for dynamic vaults and pools
    • Lending risk for dynamic vaults and pools
  • legal
    • Terms of Service
    • Stake2Earn Terms of Service
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  • Dynamic pool
  • DLMM pool
  1. Security and Risks

Risk of depositing into an imbalanced pool / pool with price out of sync

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Last updated 6 months ago

Dynamic pool

The ratio of tokens in the dynamic pool determines the price of the tokens in the pool.

As a liquidity provider, it is important that you check that the pool price is in sync with the general market price or your deposit will be impacted by arbitrage trades, causing you to incur a loss.

For example, as a pool creator for a SOL/USDC pool when the current market price is 1 SOL = 100 USDC, you would need to add 100 USDC for every 1 SOL you add to the pool. If you only added 50 USDC for every 1 SOL, this differs from the market price and you can lose money as arbitragers take advantage of your low SOL price by buying your SOL at a cheaper rate and selling it on another DEX at market rate, profiting from the difference.

DLMM pool

Sometimes, the initial price in the DLMM pool may not be in sync with the broader market price, especially when it was just created with a wrong initial price and has low liquidity.

As a liquidity provider, it is important that you check that the pool price is in sync with the general market price or your deposit will be impacted by arbitrage trades, causing you to incur a loss.

Important: As a reference for market price for the token, Meteora uses 's price API. However, this is just an estimate. Before adding liquidity, LPs should always check and compare the Meteora pool price with all other markets (e.g. other DEX pools) that have liquidity for the token to have a better sense of the general market price.

LPs can first use the "Sync with Jupiter's price" button to sync the pool price with Jupiter price before adding liquidity, to avoid the risk of loss due to arbitrage trades. Example image attached.

  • With 0 liquidity between the active bin and the Jupiter price bin, or

  • With liquidity in a bin that's close enough to the Jupiter price bin.

If there's already liquidity in bins between the active price bin and market price bin, but those bins aren't close enough to the Jupiter price, "Sync with Jupiter's price" won't be available.

In that scenario, the only way to sync the price is to either wait for arbitrage trades to occur through the pool, or manually make a few tiny swaps through the pool on your own in the appropriate swap order.

For example, if the USDC/SOL pool price is currently lower (cheaper) than Jupiter's price, you'd need to make a few tiny swaps from USDC to SOL (buy SOL with USDC) until USDC/SOL pool price increases to a point it's similar to Jupiter's price.

The "" feature is only available for out of sync DLMM pools:

Sync with Jupiter's price
Jupiter