Trade and earn with a DLMM

No experience needed. We explain how you can trade and earn money using a DLMM, and how it compares to traditional trading.

In this guide: Trading, Earning, Traditional vs DLMM.

Two ways to use a DLMM

Swap

Trade

You swap one token for another. You send in Token A and get Token B (or the other way around). You pay a small fee. There is no broker; you trade with the pool.

Provide

Earn

You add tokens to the pool and choose which price bins to put them in. When other people trade, they use those bins and pay a fee. You earn a share of that fee.

Two paths

Trade

YouPoolToken B + fee

Earn

You add tokensBinsOthers tradeYou earn share

Two paths: trade and pay a fee, or earn by providing tokens.

Takeaway: you can trade (swap and pay a fee) or earn (add tokens and get a share of the fees).

How trading works

You have Token A and you want Token B. You send Token A to the pool. The pool gives you Token B. You pay a small fee (for example a fraction of a percent of the trade). There is no broker. You trade with the pool, and the pool is always ready.

Three steps

1You have Token A2Send to pool3Get Token B + pay fee

You send Token A; you get Token B and pay a small fee.

Where your trade value goes (example: 0.5% fee)

Trade value

Fee

On a $100 trade, most is your tokens; a tiny slice is the fee.

How earning works

You add both kinds of tokens (for example Token A and Token B) to the pool. You choose which price bins to put them in. Bins are like price steps; only the bin at the current price is used for trades. When other people trade, they use the tokens in those bins and pay a fee. You earn a share of that fee.

Think of it like stocking the shelves: you put your tokens in the bins. When someone swaps, they take from the shelf and pay a fee. You earn a bit of that fee.

Your tokens sit in bins you choose

$0.98

$0.99

active

$1.00

$1.01

$1.02

Only the active bin is used for trades; you choose which bins to put your tokens in.

From trade to your share

Trader swapsPool (bins)FeeYou earn share

When someone trades using your bin, you earn part of the fee.

Takeaway: you earn by providing tokens to the pool; when others trade, you get a share of the fees.

Traditional trading vs DLMM

Who you deal with

Traditional

YouBroker / ExchangeMarket

DLMM

YouPool (no broker)

Traditional: you go through a broker. DLMM: you trade with the pool directly.

Question	Traditional trading	DLMM
Who do you trade with?	Often a broker or an exchange. They match you with another person, or the exchange takes the other side.	You trade with the pool. No need to find a buyer or seller. The pool is always ready.
Who can earn from fees?	Usually only the broker or professional market makers. You pay fees; you don’t earn them.	Anyone can add tokens to the pool and earn a share of the trading fees when others trade.
Need a broker?	Often yes, or at least an account with an exchange.	No broker. You interact with the pool (for example via a wallet and a website or app).
Where does your money sit?	In a broker account or on an order book waiting to be matched.	In the pool, in bins (price steps) you choose. It is used when someone trades at that price.

Takeaway: with a DLMM you can trade without a broker and earn by providing tokens; with traditional trading you usually only pay fees.

Simple example

See the numbers

$100 swap, 0.5% fee = $0.50; that fee goes to the pool and is shared with people who provided tokens.

$100 swap

$0.50 fee

Swap value Fee (to pool / LPs)

Mary swaps $100 of Token A for Token B and pays a $0.50 fee. Tom had added tokens to the $1.00 bin (the pool at that price). Tom earns part of that $0.50. So Mary trades and pays a small fee; Tom earns because he provided the tokens that made the trade possible.

From Mary's swap to Tom's share

Mary $100 swap

→

$0.50 fee (0.5%)

→

Tom ($1 bin) earns share

Mary pays a small fee; Tom earns because he provided liquidity in the $1 bin.

Where the $0.50 fee goes

Tom's share

Others

Tom's share Other LPs / pool

In short

Recap

Trade

Swap tokens, pay small fee.

Earn

Add tokens to bins, earn share of fees.

With a DLMM you can trade without a broker and earn by providing tokens to the pool.

See how it works: How a DLMM works.