> For the complete documentation index, see [llms.txt](https://airux-ecosystem.gitbook.io/airux-ecosystem-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://airux-ecosystem.gitbook.io/airux-ecosystem-docs/the-airux-ecosystem/usdairux-token/meteora-liquidity-pools/dlmm-pool.md).

# DLMM Pool

<figure><img src="https://1256472901-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FUeRXdewUXL5Hm9lcqdVG%2Fuploads%2FeUVX8BoR8pkpMtFoKEvs%2Fimage.png?alt=media&amp;token=c277fe51-5d76-470e-9915-c17eec54c788" alt=""><figcaption><p>Meteora | DLMM Pool</p></figcaption></figure>

## <mark style="color:blue;">Pool type</mark>

$AIRUX's **community liquidity pool** is a Meteora [Dynamic Liquidity Market Maker Pool](https://app.meteora.ag/dlmm/AtpL7fbbRRorkwFWcN1LPvaLW5oHDLN2GbBn9GDchKzd)**.**\
([Link to pool](https://app.meteora.ag/dlmm/AtpL7fbbRRorkwFWcN1LPvaLW5oHDLN2GbBn9GDchKzd))

## <mark style="color:blue;">Traits:</mark>

&#x20;<mark style="color:green;">Earn from the 2% LP Fee's!!</mark> <mark style="color:blue;">|</mark> <mark style="color:green;">Liquidity community-owned</mark> <mark style="color:blue;">|</mark> <mark style="color:green;">Volume from Arbitrage Bots</mark>

## <mark style="color:blue;">Fee's / Rewards:</mark>

<mark style="color:green;">**EVERYBODY**</mark> <mark style="color:green;">can earn fee's</mark> <mark style="color:green;">by providing liquidity in the DLMM pool</mark>.

## <mark style="color:blue;">How does it work?</mark>

First, let's explain what every word means for the liquidity pool:

* <mark style="color:blue;">**Dynamic**</mark> \
  For the DLMM pool, this means that fee's increase or decrease depending on how volatile the market is.
* <mark style="color:blue;">**Liquidity**</mark> \
  Liquidity represents the value and tokens that are in your pool, $AIRUX and $SOL for us.
* <mark style="color:blue;">**Market Maker**</mark>\
  **A** Market Maker is like a shopkeeper who always has enough stock (liquidity) for customers (traders) to buy or sell tokens. This "shopkeeper" adjusts prices or fees smartly to make trading smooth and efficient for everyone. This represents how Meteora's smart contracts work.

## <mark style="color:blue;">What are the benefits of a DLMM Pool?</mark>

#### DLMM pools can earn you some decent profits, and have you support $AIRUX while doing so!

1. <mark style="color:blue;">**High Capital Efficiency**</mark>\
   -> DLMM pools allow liquidity providers to **concentrate their liquidity within specific price ranges**, potentially maximizing the use of their liquidity.\
   \
   -> This means **liquidity providers can earn higher fees by providing liquidity where it's most likely to be traded**, reducing the amount of liquidity sitting around "doing nothing".<br>
2. <mark style="color:blue;">**Zero-Slippage Bins**</mark>\
   -> The liquidity is organized into price bins (price levels), enabling trades to occur with **zero-slippage within these bins** (price levels).\
   \
   -> This feature **reduces the cost of trading for users** and **can make the pool more attractive**, increasing its volume and, consequently, the fees earned by liquidity providers.<br>
3. <mark style="color:blue;">**Flexible Volatility Strategies**</mark>\
   -> Liquidity providers can adopt different strategies depending on their expectation of market volatility.\
   \
   -> They can choose to concentrate liquidity in a narrow price zone for high volatility or spread it wider for more stable conditions, thus optimizing for either **higher fee capture or protection from impermanent loss**.<br>
4. <mark style="color:blue;">**Dynamic Fees**</mark>\
   -> Unlike static fee pools, DLMMs adjust fees dynamically based on market conditions. During high volatility or when the pool needs to incentivize liquidity, **fees can increase, offering potentially higher returns to liquidity providers**.\
   \
   -> This mechanism helps to balance the risk of impermanent loss with potential reward.<br>
5. <mark style="color:blue;">**Single-Sided Liquidity Provision**</mark>\
   -> LPs can often **provide liquidity with only one asset**, which simplifies the process of entering and managing liquidity positions.\
   \
   -> This is useful for token launches where **one side of the pair** might not yet have liquidity. <mark style="color:green;">**$AIRUX already has 100% of supply in circulation, every single token has been bought.**</mark><br>
6. <mark style="color:blue;">**Community Engagement**</mark>\
   -> Liquidity providers in DLMM pools can **earn from trading fees**, incentivizing **long-term holding and engagement with the token's ecosystem**.\
   \
   -> For tokens like $AIRUX, this can foster a **stronger community** around the project.<br>
7. <mark style="color:blue;">**Encourages Market Making**</mark>\
   -> By providing a more efficient and potentially more profitable liquidity environment, **DLMM pools attract more market makers to the platform**, which can lead to **deeper liquidity and better price discovery for $AIRUX**.