There are many coins on SOL with a relatively high win rate in the secondary market, several coins have multiplied by dozens of times in a year, such as Saros, which I saw yesterday. Its advantage lies in creating a blank market for dynamic liquidity in Solana DeFi. The newly launched DLMM model makes it one of the only two DLMMs on Solana (the other being Meteora).

🔔 Today, let's analyze why the Saros project is so strong in the secondary market?

Saros was launched in 2021, and its liquidity has consistently ranked among the top three in Solana, making it quite impressive. The traditional AMM model had been running smoothly until recently when the systemic risks exposed by the collapse of centralized exchanges in the DeFi market (such as the Kelsier and Libra incidents) highlighted existing issues. Although there are aggregators like Jupiter, their underlying liquidity pools still lack native support points.

These existing problems made developers realize that AMM needs a comprehensive upgrade to address issues such as high slippage, shallow pools, and complex operations.

Saros V3 is a comprehensive upgrade of the Saros ecosystem, redesigning the underlying logic of Saros. Through the core technology DLMM, it attempts to solve the pain points of existing DeFi platforms (such as high slippage, shallow liquidity pools, and centralized risks). Combined with the Saros Mobile App, V3 optimizes the Web3 user experience, providing fast, low-cost trading and asset management, comparable to the smoothness of Web2 applications.

Traditional AMM is like spreading liquidity evenly across farmland, resulting in low utilization. In contrast, DLMM allows LPs to precisely target the most likely price range for transactions (the 'smart shooting zone'), saving capital and being efficient. This precision allows LPs to earn more fees, while traders enjoy lower slippage.

This may seem like an imitation of Uniswap V3, but in reality, it is based on Solana's development paradigm, constructing an integrated module system of AMM + aggregator + launchpad. What it aims to achieve is not another AMM, but to become a 'liquidity entry-level product' on Solana.

For example, managing LP on Uniswap V3 is complex and requires frequent adjustments to price ranges; while Meteora's DLMM has seen some success, Saros V3 focuses more on trading efficiency, LP earnings, permissionless asset issuance, and modular design. It also provides a solid infrastructure for the meme coin craze and decentralized finance, covering a wider range of use cases, guiding users into a cohesive trading ecosystem.