Liquidity Tokens

Create traditional meme tokens with immediate trading capability by adding your own liquidity.

What Are Liquidity Tokens?

Liquidity tokens are launched with a liquidity pool that you create and fund yourself. This provides instant trading capability on decentralized exchanges (DEXs).

Key Characteristics:

You provide initial liquidity (tokens + SOL)
Trading available immediately after creation
You control the starting price
Flexible launch timing
Traditional token launch model

How Liquidity Pools Work

The AMM Model

Liquidity pools use an Automated Market Maker (AMM) system:

Basic Concept:

Token A × Token B = Constant (k)

Example:
500,000,000 tokens × 5 SOL = 2,500,000,000 (k)

Price Calculation:

Price per token = SOL in pool ÷ Tokens in pool
Price = 5 SOL ÷ 500,000,000 tokens = 0.00000001 SOL

When someone buys:

SOL added to pool
Tokens removed from pool
Price increases automatically
"k" constant maintained

When someone sells:

Tokens added to pool
SOL removed from pool
Price decreases automatically
"k" constant maintained

Creating a Liquidity Token

Step 1: Create Your Token

First, create your token with vision.meme:

Basic Configuration:

json

{
  "name": "Liquidity Meme",
  "symbol": "LMEME",
  "description": "A meme token with instant liquidity",
  "imageUri": "https://ipfs.io/ipfs/QmAbc...",
  "supply": "1000000000000000",
  "decimals": 6
}

Tax Settings:

json

{
  "transferFeePercent": 5,
  "developerFeePercent": 60,
  "burnPercent": 10,
  "distributionInterval": "15m",
  "rewardToken": "SOL"
}

Create via Dashboard:

Connect wallet
Click "Create Token"
Fill in details
Configure taxes
Sign and submit
Receive mint address

Step 2: Determine Liquidity Parameters

How much liquidity to add?

Calculate based on your goals:

Conservative (Low Risk):

Tokens: 40-60% of supply
SOL: 2-10 SOL
Initial MC: $200-$1,000
Good for: Testing, small launches

Moderate (Balanced):

Tokens: 60-80% of supply
SOL: 10-50 SOL
Initial MC: $1,000-$5,000
Good for: Most meme tokens

Aggressive (High Confidence):

Tokens: 80-90% of supply
SOL: 50-200+ SOL
Initial MC: $5,000-$20,000+
Good for: Serious projects, funded teams

Example Calculation:

Total supply: 1,000,000,000 tokens
Liquidity allocation: 70% = 700,000,000 tokens
SOL amount: 20 SOL
Initial price: 20 ÷ 700,000,000 = 0.0000000286 SOL
Initial market cap: 0.0000000286 × 1,000,000,000 = 28.6 SOL
If SOL = $100, MC = $2,860

Step 3: Choose Your DEX

Raydium CPMM (Most Popular)

Pros:

✅ Highest volume on Solana
✅ Best visibility
✅ Automatic DexScreener listing
✅ Most trusted by traders
✅ Larger user base

Cons:

❌ Slightly higher fees
❌ More competition

Best for: Most meme token launches

Meteora DLMM

Pros:

✅ Lower fees
✅ Concentrated liquidity
✅ More capital efficient
✅ Flexible fee tiers

Cons:

❌ Lower visibility
❌ Smaller user base
❌ More complex setup

Best for: Tokens with stable price targets, advanced users

Step 4: Add Liquidity

Via Dashboard:

Go to your token page
Click "Add Liquidity"
Choose DEX (Raydium or Meteora)
Enter amounts:
- Token amount: 700000000000 (700M tokens with 6 decimals)
- SOL amount: 20000000000 (20 SOL in lamports)
Review initial price
Confirm settings
Sign transaction
Pool created instantly!

Via API:

javascript

POST https://api.vision.meme/dex/raydium/cpmm/create-unsigned

Request:
{
  "tokenMint": "YourTokenMintAddress...",
  "tokenAmount": "700000000000",
  "solAmount": "20000000000"
}

Response:
{
  "transaction": "base64_encoded_transaction",
  "poolId": "pool_identifier",
  "poolKeys": {
    "id": "PoolAddress...",
    "baseMint": "YourTokenMintAddress...",
    "quoteMint": "So11111111111111111111111111111111111111112",
    "lpMint": "LpMintAddress...",
    "baseVault": "BaseVaultAddress...",
    "quoteVault": "QuoteVaultAddress...",
    "baseDecimals": 6,
    "quoteDecimals": 9,
    "openTime": 0
  },
  "initialPrice": "0.0000000286"
}

Understanding LP Tokens

What Are LP Tokens?

When you add liquidity, you receive LP (Liquidity Provider) tokens representing your share of the pool.

LP Token Characteristics:

Represent your ownership of pool liquidity
Can be burned to lock liquidity permanently
Can be staked in some protocols
Proportional to your contribution

Example:

You add: 700M tokens + 20 SOL
Pool total: 700M tokens + 20 SOL
Your share: 100%
LP tokens received: 100% of total LP supply

Locking Liquidity

Why lock liquidity?

✅ Builds trust with holders
✅ Prevents rug pulls
✅ Shows long-term commitment
✅ Attracts more investors

How to lock:

Permanent Lock (Burn):

Send LP tokens to burn address:
1nc1nerator11111111111111111111111111111111

Time-locked:

Use services like Streamflow or SolanaPrime
Lock for 30 days, 90 days, 1 year, etc.
Can withdraw after time expires

Best Practice:

Burn 90-100% of LP tokens
Or lock for minimum 90 days
Announce publicly
Provide transaction signature

Managing Your Liquidity

Monitoring Pool Health

Key Metrics:

Total Value Locked (TVL):

TVL = (Token Value in Pool + SOL Value in Pool)

Pool Depth:

How much can be traded without major price impact
Deeper pool = more stable price
Monitor on DexScreener

Volume:

24h trading volume
Indicates activity level
Higher volume = more taxes collected

Price Impact:

How much trades affect price
Lower impact = healthier pool
Calculate: (Trade Size ÷ Pool Size) × 100

Adding More Liquidity

Why add more?

Reduce price volatility
Enable larger trades
Build confidence
Increase stability

How to add:

Go to Raydium or Meteora
Find your pool
Click "Add Liquidity"
Enter token and SOL amounts (maintain ratio)
Receive additional LP tokens

Example:

Current pool: 700M tokens + 20 SOL
Price: 0.0000000286 SOL per token

Add more: 300M tokens + 8.58 SOL
(maintains same ratio/price)

New pool: 1B tokens + 28.58 SOL

Removing Liquidity

⚠️ Warning: Only do this if absolutely necessary!

Impacts:

Removes tokens and SOL from pool
Reduces trading depth
May be seen as rug pull
Loses community trust

If you must remove:

Announce to community first
Explain reasoning
Remove small percentage only
Provide transaction proof
Re-lock remaining LP

Liquidity Strategy

Initial Distribution

Common Allocation:

Total Supply: 1,000,000,000 tokens (100%)

Liquidity Pool: 700,000,000 (70%)
Creator Holdings: 200,000,000 (20%)
Marketing: 50,000,000 (5%)
Airdrops/CEX: 50,000,000 (5%)

Conservative Allocation:

Liquidity Pool: 850,000,000 (85%)
Creator Holdings: 100,000,000 (10%)
Marketing: 30,000,000 (3%)
Reserve: 20,000,000 (2%)

Pricing Your Token

Factors to Consider:

Market Cap Goals:

If target MC is $10,000:
And SOL price is $100

Then you need: $10,000 ÷ $100 = 100 SOL equivalent

If adding 50 SOL:
Your tokens should be worth ~50 SOL
At 700M tokens in pool
Price = 50 ÷ 700M = 0.000000071 SOL

Initial MC = 1B × 0.000000071 = 71 SOL ≈ $7,100

Psychology:

Round numbers feel good (0.00001 vs 0.000008643)
Avoid very low prices (too many zeros)
Avoid very high prices (seems expensive)

Competition:

Research similar tokens
Match or beat their starting MC
Consider your advantages

Liquidity Token Advantages

For Creators

Immediate Benefits:

✅ Instant trading availability
✅ Control over starting price
✅ Flexible launch timing
✅ No waiting for bonding to complete
✅ Can launch anytime 24/7

Strategic Advantages:

✅ Set specific price points
✅ Time launch with events
✅ Coordinate marketing
✅ Control initial liquidity depth

For Buyers

Trading Benefits:

✅ Buy immediately after launch
✅ No bonding curve delays
✅ Familiar DEX interface
✅ Use limit orders (on some DEXs)
✅ Access to DEX tools

Price Discovery:

✅ Market-driven pricing
✅ Normal supply/demand
✅ Can buy dips
✅ Technical analysis works

Tax Distribution with Liquidity

How It Works

Once your liquidity pool is live, tax distribution begins immediately:

Tax Collection:

User buys/sells your token
Transfer tax deducted automatically
Tax sent to distribution wallet
Accumulates until distribution interval

Distribution Process:

Interval arrives (e.g., every 15 minutes)
System checks distribution wallet balance
Configured % of tokens sold for SOL via your pool
SOL distributed to creator and holders
Burn percentage executed
Process repeats

Example Flow:

Distribution Interval: 15 minutes
Percentage to Sell: 25%
Tax Collected: 1,000,000 tokens
Burn: 10%

Every 15 minutes:
1. Burn 100,000 tokens (10% of 1M)
2. Sell 225,000 tokens for SOL (25% of 900K)
   → Generates ~6.43 SOL
3. Creator receives: 3.86 SOL (60%)
4. Holders receive: 2.57 SOL (40%)
5. 675,000 tokens remain for next distribution

Optimizing Distribution

Sell Percentage:

Low (10-25%):

Less sell pressure on pool
More stable price
Slower reward accumulation
Better for low volume tokens

Medium (25-50%):

Balanced approach
Moderate sell pressure
Steady rewards
Good for most tokens

High (50-100%):

Fast reward distribution
More sell pressure
Can impact price
Better for high volume tokens

Interval Timing:

Short (5-15 minutes):

Frequent smaller rewards
More engagement
Higher visibility
More sell events

Long (1-24 hours):

Larger rewards per distribution
Less frequent sells
Lower impact
Better for stability

Advanced Liquidity Management

Dynamic Liquidity

Gradually increase liquidity:

javascript

Week 1: 20 SOL initial
Week 2: Add 10 SOL more (30 total)
Week 3: Add 10 SOL more (40 total)
Month 2: Add 20 SOL more (60 total)

Benefits:

Shows ongoing commitment
Improves pool depth over time
Rewards early holders
Builds confidence

Multi-Pool Strategy

Create pools on multiple DEXs:

Primary Pool (Raydium):

80% of liquidity
Main trading venue
Best visibility

Secondary Pool (Meteora):

20% of liquidity
Arbitrage opportunities
Additional exposure

Benefits:

More resilience
Better price discovery
Increased volume
Wider distribution

Liquidity Mining

Incentivize liquidity providers:

Create staking pool for LP tokens
Reward LP stakers with your tokens
Attracts more liquidity
Increases pool depth
Grows TVL

Example:

Stake LP tokens → Earn 10% APY in $LMEME tokens
Minimum stake: 30 days
Rewards distributed weekly

Security & Best Practices

Liquidity Security

Before Adding Liquidity:

✅ Double-check token address
✅ Verify SOL amount
✅ Calculate expected price
✅ Review pool parameters
✅ Have enough SOL for fees

After Creating Pool:

✅ Burn or lock LP tokens immediately
✅ Verify pool on Solana Explorer
✅ Check DexScreener listing
✅ Announce pool address
✅ Share burn/lock transaction

Avoiding Common Mistakes

❌ Don't:

Remove liquidity without announcement
Keep all LP tokens in hot wallet
Add liquidity with wrong ratio
Forget to lock LP tokens
Rush without double-checking

✅ Do:

Lock/burn LP tokens day 1
Use hardware wallet for LP tokens
Maintain proper ratio when adding
Lock LP publicly and provably
Test everything on devnet first

Rug Pull Protection

How to prove you won't rug:

Burn LP tokens:
- Send to burn address
- Share transaction signature
- 100% burned = impossible to remove liquidity
Lock LP tokens:
- Use trusted locking service
- 90+ day minimum lock
- Auto-renew or extend
- Share lock proof
Multi-sig LP ownership:
- Require multiple signatures
- Community governance
- Transparent process
Renounce authority:
- Remove mint authority
- Remove freeze authority
- Immutable metadata
- Share transaction proof

Comparing Liquidity vs Bonding

Liquidity Tokens (Traditional)

Pros:

✅ Instant trading
✅ You control price
✅ Flexible timing
✅ Familiar to traders
✅ No waiting period

Cons:

❌ Requires upfront capital
❌ Liquidity risk if mismanaged
❌ Need to lock LP tokens
❌ Less "fair launch" perception

Best For:

Funded projects
Experienced creators
Specific price needs
Time-sensitive launches
Teams with capital

Bonding Curve Tokens

Pros:

✅ No upfront capital needed
✅ Fair launch perception
✅ Automatic liquidity creation
✅ Impossible to rug
✅ Community-funded

Cons:

❌ Trading delayed
❌ Less price control
❌ Depends on reaching target
❌ Less familiar to traders

Best For:

New creators
Community-first projects
Building trust
No initial capital
Fair distribution

Example Launches

Example 1: Small Community Token

Setup:

Total supply: 500M tokens
Liquidity: 400M tokens + 5 SOL
Creator: 100M tokens
Tax: 4% (50/50 split)
DEX: Raydium

Results:

Initial price: 0.0000000125 SOL
Initial MC: $625 (SOL at $100)
LP burned immediately
Gained 200 holders in week 1
Successful community launch

Example 2: Medium Project

Setup:

Total supply: 1B tokens
Liquidity: 750M tokens + 30 SOL
Creator: 150M tokens
Marketing: 100M tokens
Tax: 5% (60/40 creator/holders)
DEX: Raydium

Results:

Initial price: 0.00000004 SOL
Initial MC: $4,000 (SOL at $100)
90% LP locked for 90 days
Featured placement for 7 days
Reached 1,000 holders in 2 weeks

Example 3: Large Launch

Setup:

Total supply: 10B tokens
Liquidity: 8B tokens + 200 SOL
Creator: 1.5B tokens
Marketing/CEX: 500M tokens
Tax: 3% (70/30 creator/holders)
DEX: Raydium + Meteora

Results:

Initial price: 0.000000025 SOL
Initial MC: $25,000 (SOL at $100)
100% LP burned
Multi-DEX presence
Professional marketing
10,000+ holders in month 1

Post-Launch Checklist

Immediate (First 24 Hours)

✅ Burn/lock LP tokens
✅ Share burn transaction
✅ Verify DexScreener listing
✅ Announce pool address
✅ Post on social media
✅ Engage with early buyers
✅ Monitor pool health

First Week

✅ Daily community updates
✅ Track holder growth
✅ Monitor distribution events
✅ Respond to questions
✅ Share milestones
✅ Build community

First Month

✅ Consider featured placement
✅ Evaluate adding more liquidity
✅ Implement community suggestions
✅ Plan marketing campaigns
✅ Build partnerships
✅ Develop roadmap

API Reference for Liquidity Tokens

Create Raydium Pool

javascript

POST https://api.vision.meme/dex/raydium/cpmm/create-unsigned

Request:
{
  "tokenMint": "TokenMintAddress...",
  "tokenAmount": "700000000000",
  "solAmount": "20000000000"
}

Response:
{
  "transaction": "base64_encoded_transaction",
  "poolId": "pool_identifier",
  "poolKeys": {
    "id": "PoolAddress...",
    "baseMint": "TokenMintAddress...",
    "quoteMint": "So11111111111111111111111111111111111111112",
    "lpMint": "LpMintAddress...",
    "baseVault": "BaseVaultAddress...",
    "quoteVault": "QuoteVaultAddress...",
    "baseDecimals": 6,
    "quoteDecimals": 9,
    "openTime": 0
  },
  "initialPrice": "0.0000000286",
  "estimatedMarketCap": "28600"
}

Get Pool Information

javascript

GET https://api.vision.meme/dex/pools/:poolAddress

Response:
{
  "pool": {
    "address": "PoolAddress...",
    "tokenMint": "TokenMintAddress...",
    "tokenReserve": "650000000000",
    "solReserve": "23450000000",
    "currentPrice": "0.0000000361",
    "volume24h": "156.7",
    "tvl": "30500",
    "lpSupply": "1000000",
    "lpBurned": "1000000",
    "createdAt": "2024-01-01T12:00:00Z"
  }
}

Troubleshooting

Pool Not Showing on DexScreener

Wait 5-10 minutes - Indexing takes time

Check:

Pool has trading activity
Minimum liquidity met (~$250+)
Token has valid metadata

Force update:

Make a small trade
Contact DexScreener support
Verify pool on Solana Explorer

Price Not Updating

Causes:

Cached data
Browser issues
RPC endpoint lag

Solutions:

Refresh page
Clear cache
Switch RPC endpoint
Wait 30 seconds

High Slippage Warnings

This means:

Low liquidity
Large trade size
Price impact high

Solutions:

Add more liquidity
Split trade into smaller parts
Increase slippage tolerance (carefully)
Wait for more liquidity

Resources

DEX Platforms:

Analytics:

LP Locking:

Ready to launch your liquidity token? Create Token →

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Good night

hashtagWhat Are Liquidity Tokens?

hashtagHow Liquidity Pools Work

hashtagThe AMM Model

hashtagCreating a Liquidity Token

hashtagStep 1: Create Your Token

hashtagStep 2: Determine Liquidity Parameters

hashtagStep 3: Choose Your DEX

hashtagStep 4: Add Liquidity

hashtagUnderstanding LP Tokens

hashtagWhat Are LP Tokens?

hashtagLocking Liquidity

hashtagManaging Your Liquidity

hashtagMonitoring Pool Health

hashtagAdding More Liquidity

hashtagRemoving Liquidity

hashtagLiquidity Strategy

hashtagInitial Distribution

hashtagPricing Your Token

hashtagLiquidity Token Advantages

hashtagFor Creators

hashtagFor Buyers

hashtagTax Distribution with Liquidity

hashtagHow It Works

hashtagOptimizing Distribution

hashtagAdvanced Liquidity Management

hashtagDynamic Liquidity

hashtagMulti-Pool Strategy

hashtagLiquidity Mining

hashtagSecurity & Best Practices

hashtagLiquidity Security

hashtagAvoiding Common Mistakes

hashtagRug Pull Protection

hashtagComparing Liquidity vs Bonding

hashtagLiquidity Tokens (Traditional)

hashtagBonding Curve Tokens

hashtagExample Launches

hashtagExample 1: Small Community Token

hashtagExample 2: Medium Project

hashtagExample 3: Large Launch

hashtagPost-Launch Checklist

hashtagImmediate (First 24 Hours)

hashtagFirst Week

hashtagFirst Month

hashtagAPI Reference for Liquidity Tokens

hashtagCreate Raydium Pool

hashtagGet Pool Information

hashtagTroubleshooting

hashtagPool Not Showing on DexScreener

hashtagPrice Not Updating

hashtagHigh Slippage Warnings

hashtagResources

What Are Liquidity Tokens?

How Liquidity Pools Work

The AMM Model

Creating a Liquidity Token

Step 1: Create Your Token

Step 2: Determine Liquidity Parameters

Step 3: Choose Your DEX

Step 4: Add Liquidity

Understanding LP Tokens

What Are LP Tokens?

Locking Liquidity

Managing Your Liquidity

Monitoring Pool Health

Adding More Liquidity

Removing Liquidity

Liquidity Strategy

Initial Distribution

Pricing Your Token

Liquidity Token Advantages

For Creators

For Buyers

Tax Distribution with Liquidity

How It Works

Optimizing Distribution

Advanced Liquidity Management

Dynamic Liquidity

Multi-Pool Strategy

Liquidity Mining

Security & Best Practices

Liquidity Security

Avoiding Common Mistakes

Rug Pull Protection

Comparing Liquidity vs Bonding

Liquidity Tokens (Traditional)

Bonding Curve Tokens

Example Launches

Example 1: Small Community Token

Example 2: Medium Project

Example 3: Large Launch

Post-Launch Checklist

Immediate (First 24 Hours)

First Week

First Month

API Reference for Liquidity Tokens

Create Raydium Pool

Get Pool Information

Troubleshooting

Pool Not Showing on DexScreener

Price Not Updating

High Slippage Warnings

Resources