Guide: How to participate in the JUP launch as a DLMM liquidity provider

Meteora
9 min readJan 30, 2024

During the JUP token launch (powered by Meteora’s DLMM), more than 1 million users and bots would be claiming and trading JUP at the same time and we expect a massive surge in network usage.

It might be rather intimidating for new users, so we prepared this basic guide to help you navigate through the various methods and tools for acquiring JUP.

In addition, if you are a JUP liquidity provider on Meteora, you stand to earn MET points and other incentives after the token l! It may even be possible to earn triple-stacked incentives with your airdropped or purchased JUP.

How to acquire JUP the DLMM way on Meteora

The default/recommended method to acquire JUP is using the available tools on the Jupiter LFG launchpad.

However, if you want a creative way to acquire JUP and have no preference regarding how fast or early you acquire the token at launch, you can try opening a position on JUP-paired DLMM pools on Meteora. Recap how DLMM works by reading this post.

Add liquidity to a single-sided DLMM pool for JUP

There are a couple of JUP-paired DLMM pools already set up on Meteora. More pools would be listed closer to or after the launch.

Select the liquidity pool you wish to open a position in:

As an example, check out the JUP/USDC pool

Turn off “Auto-fill” and you would be able to place only USDC liquidity in the pool in advance.

Set your price range and choose your volatility strategy (liquidity shape) — Spot, Curve, or Bid-Ask.

When the JUP launch begins, your USDC would be lying in wait to acquire JUP when JUP price falls within your range and JUP is swapped in for your USDC. You are essentially providing USDC liquidity for JUP/USDC trades.

Whichever strategy you use, if JUP price is outside your price range, your position is inactive and your liquidity is untouched.

Spot

In this pool example, the starting price is preset at 0.811430 USDC per JUP, so you can add USDC and can set a range of minimum 0.572800 USDC per JUP and maximum 0.811430 USDC per JUP.

Note: 0.811430 USDC is NOT the starting or maximum price of JUP on the LFG launchpad. The starting price set up on DLMM is intentionally higher so that there’s sufficient buffer to account for the volatile price movement of JUP when the launch starts.

After launch, if JUP continues to fall further within your range and trades occur, the active price would move to the left and your initial USDC waiting there will be swapped out for JUP. If JUP price reaches all the way down to 0.572800 USDC, your position would only have JUP as all your USDC would have been used.

However, note that if JUP price starts rising from 0.572800 USDC towards 0.811430 USDC, the JUP in your position will start being sold for USDC again.

If the JUP price is out of your range, your position is inactive and your liquidity gets untouched.

As this is a Spot strategy, your USDC liquidity is uniformly distributed and you would be acquiring JUP at the same rate at every bin and price point.

Curve

Using the same pool example above but with the Curve strategy, your liquidity is more concentrated when it is closer towards the current preset active price of 0.811430 USDC per JUP. This means that if JUP price hits 0.811430 USDC and continues dropping, more of your USDC is being swapped out for JUP near the 0.811430 USDC price point. As the price falls further, a decreasing amount of USDC in each price point is used. This strategy may be useful if you feel that JUP is more likely to be traded closer to 0.811430 USDC.

Note: If after reaching the minimum price of 0.572800 USDC, JUP price starts rising again towards the maximum of 0.811430 USDC, the JUP acquired earlier in the position would start being sold for USDC.

Bid-Ask

When compared to the Curve strategy, the Bid-Ask strategy makes your liquidity more concentrated further away from the current preset price of 0.811430 USDC per JUP. When JUP price falls below 0.811430 USDC and moves towards the left, your USDC is being swapped out for JUP at an increasing rate. More of your USDC is used as the price falls further left and towards the minimum of 0.572800 USDC. This strategy may be useful if you feel that JUP is more likely to be traded closer to 0.572800 USDC.

Note: If after reaching the minimum price of 0.572800 USDC, JUP price starts rising again towards the maximum of 0.811430 USDC, the JUP acquired earlier in the position would start being sold for USDC.

Setting Priority Fee and Slippage on Meteora

We’ve added priority fees to both dynamic and DLMM pools so it should be easier to add/withdraw liquidity during the JUP launch or whenever the chain is super busy. We recommend going TURBO or higher if you’re going to be LPing during the launch.

You can also increase your slippage settings if your add/withdraw liquidity transactions keep failing.

Get alerts for token price movements on DEXScreener

Afraid that your DLMM liquidity position for JUP goes out of range and becomes inactive without you knowing? You can set up price alert notifications using DEX Screener: https://dexscreener.com/solana/meteora

What can you do with your JUP? Add liquidity and stack MET points!

The MET points system will kick off with the JUP token launch. If you are able to claim or acquire JUP, you can add liquidity on DLMM or dynamic pools and earn points! You can earn MET points based on this scoring system, and points would translate to MET tokens down the road.

For now, you can prepare to add liquidity to the following DLMM pools.

There will also be special JUP-paired pools launched in collaboration with other Solana DeFi projects and you can look forward to plenty of bonus token incentives on top of the MET points you earn!

More information about these joint farming pools would be announced soon, stay tuned!

Other tips for the JUP token launch

For users visiting the default Jupiter LFG launchpad to acquire JUP, here are some basic tips for you.

1. Prepare your Solana wallet and SOL for transaction fees

Install and prepare your Solana wallet on both Desktop PC (browser extension) and mobile. If you experience issues transacting on one device, you can easily switch to the other. Popular wallets include Phantom, Solflare, and Backpack.

You also need SOL for transaction priority fees. For popular token launches like JUP where there are a lot of users, you may need more SOL than usual to ensure a successful transaction.

You should also send funds to the Solana wallet you plan to use in advance. You would be able to swap for JUP using most tokens on Solana as Jupiter would facilitate the swap between tokens. But note that USDC is likely the best option as the primary liquidity venue would be a Meteora JUP/USDC DLMM position.

2. Get familiar with the Jupiter LFG launchpad

Visit https://lfg.jup.ag/ (launch details would be updated later) and familiarize yourself with the different tools available on the launchpad site.

A) Claiming JUP

If you are eligible for the JUP airdrop, you can claim them on the launchpad site. There is no rush to claim, as the JUP airdrop will be claimable until 31st July 2024, 03:00 PM UTC. Early on, priority fees to claim JUP airdrops are expected to be high due to demand.

B) Setting DCA and Limit Orders in advance

DCA (Dollar Cost Average)

If you don’t want to rush to compete with thousands of users to manually swap for JUP at launch, you can preset a DCA position in advance to acquire JUP. DCAs are useful if you want to spread your orders out over-time, and accumulate JUP without being particular about price.

DCA would help you purchase tokens based on your preferred interval settings. For example, you can preset a DCA to purchase JUP every 1 minute over 8 orders.

Note that there is a minimum of 100 USD per order required (e.g. minimum 800 USD for 8 orders), and USDC orders have a higher chance of succeeding. As new tokens are volatile, you can choose to set a maximum price limit for your DCA. If the price goes beyond this limit, DCA would stop triggering orders.

Limit Order

Similar to DCA, you can preset Limit Orders before the start of the token launch. Limit Orders aims to purchase the token at your specified price. Successful orders will fill at exactly the price you set. Setting a higher price increases the likelihood of being filled. There is also a minimum of 100 USD required per order and USDC orders have a higher chance of succeeding.

Limit Orders are useful if you know the exact price you want to buy JUP at.

C) Swap

At the start of the launch, you can swap for JUP using the tokens you have in your wallet.

Slippage: You can set the maximum slippage you are willing to bear, which is the difference between the requested output for your trade when you swap and the eventual executed output. By default, slippage is set to 20%, and some users may even be willing to go up to 50%. In other words, you are willing to pay up to 20%-50% more than the current price you are quoted. This may be high compared to what you usually need for swaps, but a higher slippage would increase the chances of your swap transaction getting through during the launch.

Additionally, do verify that the swap quote shown is fair and reasonable, since volatility might lead to subpar quotes at launch. You should proceed to swap only after verifying and setting a reasonable slippage.

3. Increasing the likelihood of transaction success

Set your preferred Max Cap for priority fees

On the Jupiter LFG launchpad, you can set your “Max Cap” for your priority fees. Increasing it increases the likelihood that your transaction goes through and ensures you only pay up to an amount you’re comfortable with. Jupiter would decide the best fee for you at the time of your transaction based on your Max Cap.

Note:

  • Max Cap does not impact your DCA or Limit Order trigger and execution, only for the creation of the order.
  • Max Cap is important when you are claiming JUP and making a swap, especially if many users are taking those actions at the same time and the network is congested.

In the event of congestion, you can also override Jupiter’s dynamic priority fee and use an “Exact Fee”. This allows you to set and pay an exact fee, and improve your odds at landing a transaction.

4. Resolving transaction failure issues

Increase Max Cap: Increasing your “Max Cap” priority fee on the Jupiter LFG launchpad might help your next transaction go through if you have already experienced multiple failed transactions. Or switch to Exact Fee and use a higher fee setting.

Increase Slippage: When swapping, if your current slippage setting results in multiple failed transactions, you may want to increase your slippage before you swap again.

Switch RPC endpoint: If you find that your network connection is very slow or transactions keep failing, you can try changing your RPC endpoint (either Triton or Helius) under Settings.

Switch wallet device (desktop web extension or mobile wallet app): If you find that your Solana wallet on one device is experiencing performance issues, you can try switching to your other device.

We hope this guide helps you prepare for the JUP launch!

If you have any questions, join our Meteora discord !

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Meteora

Building the most secure, sustainable and composable yield layer for all of Solana and DeFi. Discord: https://t.co/vJ6ey5RYnm