12. Draw Your Own DLMM Position | Liquidity Shaper

DLMM Clan is an independent DeFi liquidity-provider education community for EVM chains, distinct from Meteora, which is a DLMM protocol on Solana. In this walkthrough, CryptoCroco shows the Liquidity Shaper on DLMM KING (https://dlmmking.com/), starting from a SpaceX/USDG leaderboard row and opening the pool without copying another wallet's shape. He explains pool composition (10 BPS, 0.5% fees you earn, dynamic fees up to nearly 1%), Deposit vs Swap vs My Position, and an interactive Uniswap-sourced price chart (~$1M liquidity, ~$11.7M 24h volume) with Active/Depositing/Sum overlays. He covers one-sided ranges (for example buy from $130 down to $105), bins as hundreds of CEX-style limit orders, preset shapes (Spot, Bid-Ask, Bimodal, Descending, Ascending), the Curve slider, then freehand Draw, Smooth, Brush, Select, Ramp, and Flatten. Live he connects Rabby, deposits a custom ramp, copies a successful shape from other positions in the pool, and notes a wallet that earned about $300 in fees on roughly $7,000 of order size.

Intro: the Liquidity Shaper on DLMM KING

This is the best trading experience I have ever had. What I'm talking about is the Liquidity Shaper of DLMM KING. DLMM stands for Dynamic Liquidity Market Makers. These protocols are gaining traction in DeFi right now because they allow you to trade in ways that was simply impossible beforehand.

When you use DLMM, you have unlimited flexibility in how you set up your trades. On top, you are earning for setting up your trades and making trades. It flips the tech upside down, where you do not pay for your trades, but you earn for your trades. And this is built into the technology. It's not a one-time promotion. In today's video, I will show you exactly how you can use the Liquidity Shaper on DLMM KING. So, stick with me until the end so you can open your trades yourself and earn fees while doing so. Let's get into it.

The material presented in this tutorial and accompanying presentation is intended for informational purposes only and should not be interpreted as financial advice. Any investment decisions or positions you take are solely at your own risk.

From the leaderboard into the Liquidity Shaper

When you open DLMM KING, where you'll land first is the leaderboard. I have done an entire tutorial or video where I explain in depth what all of this means, how the leaderboard is set up, and how you can use it for yourself in order to look, okay, which wallets are trading successfully, copy their trades, track their wallets. All of this you can do here in the leaderboard. It is very powerful in seeing what kind of opportunities do others find and then jumping on those same trades early on that you also get the same kind of upside. This is all in a previous video, so if you're interested in that, take a look. So, I am going directly into a Liquidity Shaper. This is what I want to show you today. I just want to start out at a point from the leaderboard where you might land in the Liquidity Shaper. And here I see, for example, a SpaceX position. I'm going to take this, and then I can either open the same pool, or I can copy this over into the Liquidity Shaper directly. So in both ways, you end up in the Liquidity Shaper, just in one, you also copy the exact position that this user had open.

I'm going to take the one where I only go into the pool and do not copy the shape that he has. Now, let's go. This is the Liquidity Shaper.

Pool header, fees you earn, and Deposit / Swap / My Position

And I understand that if you see this the first time, it might be overwhelming in terms of all of the different things you see up here and here, and what does this now mean, and what does this now mean? Just the amount of information here, I understand that the first time, it can be overwhelming. But understanding it down the road really allows you to trade in ways that you have never been able to trade before. So what I'm going to do now in this video, I'm going to go through each part of this, explain what you see, and how you can use that. And at the end, we will go all the way to the end of the page, and you will have a good understanding of everything that is here. Let's start at the top left side. So, first of all, what you can see here is the pool. This is SpaceX. It's the SpaceX stock that is also traded on the Nasdaq. It's tokenized by Robinhood, known as a neo-broker. And you see what is it trading against? It's trading against USDG, which is the dollar-backed stablecoin of Robinhood. So this is essentially just trading SpaceX, but you have both sides, dollar side and the SpaceX side.

Below, you have some information about the pool composition. It's 10 BPS and 0.5% fees. Now note, these fees is what you earn. It is not what you are paying. So every time your trade is being converted, you are earning those 0.5% while your position is being traded. So, this is always to keep in mind. All kinds of fees you see here is what you earn, not fees you're paying. Right now, we're up here in Deposit. You can see some, okay, what's the active price and how big is the position here right now in 24-hour TVL, et cetera, fees to TVL. So you get some KPIs up here.

And you're here right now in Deposit. So, you can deposit here, or alternatively, you click on Swap, and you can swap these tokens as well, so US dollars to SpaceX. But note, when you use the swap, it's different to DLMMing, so there you pay standard swap fees. It goes through an aggregator or through this pool, depending on where you get the best price. If you already have a position, you can click on My Position and see it here, and you have pool info. This is the liquidity that is in the pool right now. You can see here the smart contract of the pool. You can see here SpaceX token or USDG token, the smart contract. So you can put this into DEX Screener or Gecko Terminal or whatever you're using and just check on the underlying tokens. It's very good, especially if you're not trading established tokenized real-world assets like SpaceX from Robinhood. But if you may be trading memes, it's always good to check, is it a scam? Is it something real?

Here, more information about the whole pool fees you earn. And then it's now very technical, but when volatility goes up, you earn even more fees than the 0.5% for allocating your trades. You earn up to almost one percent in maximum fees.

The interactive price chart

Now, the next thing that you will see is here, the price chart. And this price chart, I think, is pretty powerful. It shows you different things. So first of all, it tells you, okay, where is the price chart coming from? Where's that data coming from, from the price movement? And here you can see it's a Uniswap pool with almost 1,000,000 dollars in liquidity there and volume of 11.7 million over the past day, 24 hours. So this is a good indication, okay, the price here should be pretty near to the real price.

Now, you have here 2 buttons, and I don't have any active position right now, but if you would click here on Active and you have an active position out, you will see the shape of the position shown here on the right side. And then if you're building already a position, this is down here, it will also show the position here for you into the chart. And then you can say, "Okay, I want to see my active position. I want to see what I'm depositing right now." Or you can also then decide to have the sum of it. So you already have a position out, you're adding more orders to it, and what's then the combined of both. Here, pretty standard, 15 minutes, one-hour chart, 4-hour chart. So you can just whatever chart you prefer to see. Now, what I find really nice is this chart is pretty interactive. So you don't just see your position that you want to deploy. You can actually move it up and down exactly to the price ranges you have here. I think it's very powerful.

Just as an example, I expect the price to trend here. I'm going to provide my orders like this because if the price goes up, I want to sell my SpaceX tokens, and if the price goes down, I want to buy them in this order as it's shown here. Now, right now, what you see are orders set in both direction. They are set to sell to the upside and buy to the downside. But you can always just have one side. You can decide, hey, I just want to start buying SpaceX in prices below 130 dollars and then all the way down to, let's say, 105 dollars. You can set your orders exactly as you want. Now, note that so far, I've been with the price chart, showing you what you can do here, but we've always just had this shape of building your orders. And if you're a bit confused, why is there a shape? Where's my order actually? Why is there a weird shape here? This is... If you're coming from an order book model, these are hundreds of... Exactly, it shows down here, 248 bins. This means this is like placing 240 limit orders on a centralized exchange.

Now, just think about the amount of time and effort and fees and everything this would cost doing on a centralized exchange. But here, it is very intuitive, and you don't pay crazy fees, and it doesn't take a huge amount of time to calculate how big does each limit order need to be. You see it visually here. I think this explains the chart pretty good.

Preset shapes and the Curve slider

I would now go over to the shape. Now, up here, so far, we have been in the curve shape, but you can do any type of shape you want. And you can do a Spot shape. This is just uniform, all orders the same size as the price goes down. You can do Bid-Ask. So this changes. This first goes in aggressively and then lowers and then aggressive again. You can do... How it's called? Bimodal. So you can do kind of 2 curves, shapes. You can do Descending, so the more the price falls, the more, the larger your orders get. This would effectively buy in with more money and liquidity, the lower the prices. Or you can do the opposite, Ascending. So as the price falls, you aggressively go in, and then if it falls all the way down there, you will not buy more. Maybe your thesis is actually, I believe this to reverse, and if it goes further down, then I don't want to buy more of SpaceX tokens then.

So it gives you there a lot of flexibility. Now, what you see down here is also something called Curve. So the Curve allows you to change how your order shape is and make it less or more aggressive. This would be more aggressive. You buy in with larger amounts and then really fade out quickly. Or the opposite, you want a bit more uniform. There's a notable difference, but the Curve is much slower in which the orders are decreased or the other way around. You already start to buy in pretty heavily. You still get more and more the more the price falls, but it's a step-by-step incremental increase versus a very deep one, like this one. This alone, I think, gives you already a ton of flexibility, but DLMM KING brings it to a complete new level with this Liquidity Shaper down here.

Freehand Draw, Smooth, Brush, Select, Ramp, Flatten

Let's say I want to buy into SpaceX. I wanna build a position that buys into SpaceX, and I believe the price will go back to this bottom here. Let's say it's about 100, 105, something around here, and I only wanna start buying into it actually around current prices. Now, maybe I'm so convinced that the price will come down that I actually do not wanna start buying in so early here with so many amounts. So even if I do here an aggressive, I'm limited to this. So this is where the Liquidity Shaper comes in. What I can do now here, I'm gonna scroll down a bit, is literally draw with my mouse or pen or whatever you're using into the Liquidity Shaper to adapt my position. I'm gonna show you how this is this time. So now I say, "Actually, I want this to be straight much longer, all the way until here." This is kind of the price range now where I wanna get in more. Ah, maybe a bit too much. I bring back 2. This is now the price. Maybe a bit more. Like this.

Now you can say, "Mm, this is maybe already good for me, but I wanna smoothen things out a bit." You can see it's hand-drawn. So I click up here and Smooth. Click a couple of times, and then it kind of smoothens it out, creates curves there and smoothens your position. Maybe now you say, "Actually, this is very aggressive up here. As soon as it just starts to be down here, say in this area, I wanna start to be aggressive." So you pull this up, and then you do an extending down, and you smoothen out again. Okay. And then you might say, "Actually, this is also a bit too aggressive. I wanna have it like this. Already start dollar cost averaging a bit into it from these prices here." I think this is a better setting. So as you can see, you can literally just draw into this and build your position with just simply drawing into the Liquidity Shaper to build your position.

So next to Draw, you also have Brush. Now, different to Draw, it adds or it removes. So I'm just gonna show quickly. I can do like this, and there it adds. And if I do here, it removes bins. I can go back quickly. The Brush only adds, and you can set the strength, you can set the radius. So I'm gonna do a small radius, and if I click here, it will only add. It will never remove. Wherever I click, it just adds. I personally prefer using the Draw, but it's a nice feature to have. Now, next to it, you also have the Select. I think this is very cool. So you can say, for example, in this part, you can select this area, and then you can say, "Ramp the selected," and it makes it more straight, like a straight ramp. And then you can do the same thing here and say, "Actually, ramp this one. Ramp the selected." Then it's a nice straight line. And then you can take these, maybe you have done before, drawn here, and they're not perfect, and then you say, "Flatten the selected." And then it's perfectly flattened. So this way, you can make your ramp straight or whatever you wanna do by just selecting certain bins and changing the composition. This has been the Liquidity Shaper. I think it shows how powerful the Shaper is. You can literally do whatever you want with it.

Connect wallet, deposit, and copy other positions

Now, let's say I now want to allocate into this position. I'm happy with this. Now I just wanna show you quickly how to do this, and for this, I'm gonna connect my wallet. You can choose here between MetaMask and Rabby. I have a Rabby wallet, so I'm gonna choose Rabby here. So what you're seeing here right now is the position we have been building, and you can see down here, there has been already an old position, and now I can click up here on Active and see my active position that has been opened before. And then I can, on the other side, deselect it and see my current position that I'm building now, and let's say the sum of it. Now, maybe now that I see the combined, I say, "You know what? Actually, I'm gonna change this a bit. I'm gonna do the whole thing to a ramp, please." So what I can do now is review my position and confirm and deposit.

Click. There you see my new position. It's so freaking fast, this front end. You now see the new shape that I've built. It just increases liquidity the further it goes down. Now, there's one thing I haven't showed you so far is other positions. So I can go into a pool and see other positions and have they been successful. And for example, I can see that this one has been very successful, and I can just copy this into a Shaper. So I can say, "Actually, Copy this. Check. Copy into Shaper," and then I have it right here. So any pool I look at, I can just go and copy and put it into the Shaper and work with it.

Join the DLMM Clan

And if you are still there, you are truly part of the chosen 5%. You understand what it takes to make it in the most brutal market out there, which is the crypto market.

I salute to you in respect, and I invite you to join me in my community, the DLMM Clan. There are so many resources, tutorials, opportunity trackers, tools, people you can ask questions to, and weekly meetups where you can find like-minded people like you and I.

Buying the bear market dip just feels so much better doing it together. I am speaking out of my own experience, especially in the bear market where you're unsure, knowing others are around you is really helpful. The clan is 100% free and open to anyone who's joining right now.

In the future, though, once the bear market bottom is in, we will start restricting access.

But for you who's joining right now, it will always remain free. So looking forward to see you there. This has been the Liquidity Shaper on DLMM KING. It's one of the most powerful tools I have used, and I can just repeat every time the price now goes through here, you earn fees. You don't pay fees. These fees that you are earning and that are accumulating. And just to show you how much fees this really is, this wallet has earned with 7,000 dollars of order size. It has already earned 300 dollars of fees. All these fees normally go to the centralized exchanges or they go to the market makers, but if you trade here, you are earning them. I love this technology and the possibility it gives you. I hope you found this helpful, and see you next time in the next tutorial about Dynamic Liquidity Market Making. See you there.