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Your bins follow the price

On a Meteora DLMM pool, liquidity sits in price bins. When the price leaves your bins, a snuggle moves them next to it using the tokens you already hold. Nothing is swapped, so there is no slippage and nothing for bots to front-run. On an automatic snuggle, our keeper pays the network fee.

4 min read Beginner Meteora vaults rolling out · Raydium opens first
A row of price bins. Your nine bins sit around the price and earn fees. Price climbs above them, so every bin turns to USDC. After the wait, the snuggle lifts them and puts nine bins of the same USDC right under the new price. Nothing is sold.

    SOLUSDCFee from a tradeIllustrative prices and fees, not a promise

    1. Your nine bins hold SOL above the price and USDC below it. Trades through them pay you a fee.
    2. Buyers push the price up and take your SOL bin by bin. Above your top bin you hold only USDC and stop earning.
    3. The price has to stay out on its time-weighted average as well, so one spike can't trigger anything. Then your delay runs. Snuggle now skips the delay, never the out-of-range rule.
    4. In one transaction: collect your fees, take the liquidity out, close the old bins and open nine new ones right under the price, holding the same USDC. Nothing is sold.
    5. Price drifts back into your bins. You buy SOL back bit by bit, and every trade through your bins pays you.

    How a DLMM pool works

    A DLMM pool is a row of price bins. Each bin is one fixed price, and the price moves one bin at a time.

    A smaller row of bins. Bins above the price hold SOL, bins below hold USDC, the active bin holds both.

    • Bins above the price hold only SOL. When buyers push the price up through a bin, they take its SOL and leave USDC behind.
    • Bins below the price hold only USDC. When sellers push the price down through a bin, they take its USDC and leave SOL.
    • The active bin is where trading happens right now, and it holds both. Inside one bin every trade fills at exactly that bin's price, so there is no slippage inside a bin.
    • Every trade through your bins pays you a share of the pool fee. DLMM pools add a variable fee when the market moves fast, so busy days pay more.

    The snuggle, step by step

    These are the five moments in the animation at the top. Your position keeps its width the whole time; only its place on the row changes.

    1. In range. The active bin is inside your bins, so trades pay you.
    2. Price runs. Buyers move the price up and take your SOL one bin at a time. Once the price is above your top bin, every one of your bins holds USDC and you stop earning. The same happens in reverse when the price falls: you end up holding SOL.
    3. The wait. The keeper checks your position every few minutes. A snuggle needs two things: the live price and its time-weighted average are both outside your bins, and your chosen delay has passed. With Snuggle now you skip the delay, but never the out-of-range rule.
    4. The snuggle. One transaction collects your fees, takes your liquidity out, closes the old bins and opens the same number of bins right next to the price, on the side your tokens belong: USDC goes just under the price, SOL just over it. The vault program refuses any snuggle that would need a swap, so it can only re-use what you hold. The rent from the closed position pays for the new one.
    5. Earning again. When the price comes back into your new bins, trades fill them and you are paid on each one.

    Why nothing slips, swaps or gets front-run

    A traditional rebalance swaps about half your position back to an even mix. A snuggle swaps nothing, so the costs that come with a swap never start.

    A traditional rebalance

    • Swap feepaid to the pool on every swap
    • Slippagea big swap moves the price against you
    • MEVbots trade in front of and behind your swap
    • Sells lowswaps right after the move, at the worst price

    A snuggle

    • No swap feenothing is swapped
    • No slippageyour tokens go straight into fixed-price bins
    • No MEVthere is no swap for a bot to sandwich
    • Sells nothingyou keep the exact tokens you hold

    A snuggle is still a public transaction, and the price can move while it lands. It removes the swap costs, not market risk.

    Who pays for what

    The keeper only pays when it does the work. If you press the button yourself, the network fee is yours. Solana network fees are usually a fraction of a cent.

    ActionNetwork feeAnything else
    Automatic snuggleThe keeper paysNo swap fee, no slippage
    Snuggle now (you press it)You payNo swap fee, no slippage
    Deposit, withdraw, harvestYou payNothing from QuantumPools
    Fees your bins earn—A performance fee of at most 15% of the trading fees collected. Never your deposit, never price gains. How the fee works

    What the keeper can and can't do

    The keeper is our bot. It has one job, and the vault program limits it to that job.

    It can

    • Watch your bins and the price around the clock.
    • Snuggle your position once the price has left your bins and your delay has passed.
    • Pay the network fee for every automatic snuggle.

    It can't

    • Withdraw your tokens or send them anywhere. Only you can withdraw.
    • Swap your tokens. The program rejects a snuggle that isn't one-sided.
    • Move your bins while the price is still inside them.

    What a snuggle doesn't fix

    If the price runs a long way in one direction, you still end up holding the token that fell behind. That is impermanent loss, and a snuggle doesn't remove it. It avoids locking it in with a swap at the worst moment, and it puts your bins back where trades happen, so you start earning again.

    Narrow positions snuggle more often. Bin step and width matter more than anything else here; Configuration covers how to choose them.