Deep Dive: Meteora Limit Orders

We’ve shipped Limit Orders today.

This is Solana’s most powerful, real on-chain limit order, without any keepers or cranks, additional fees, or any other fugazi tech.

DLMM Limit Orders are the first design where the limit order is the AMM — same bin, same swap, same fee accrual, plus a fill-priority state machine and a non-replenishing flag.

Introduction to Limit Orders

Meteora’s Flagship DLMM Program has always felt very similar to orderbooks. It primarily functions as a collection of discrete price bins, spaced from each other by the “bin step”, which is 1–400 bps.

DLMM normally works in terms of Liquidity. When liquidity is consumed, it is immediately available for the reverse trade (Buys → Sells), with a small fee to the liquidity owner.

LO flips that on the head. When liquidity is consumed, the funds are taken “off the book” immediately in the trade itself.

There is no need to hit “withdraw” fast enough before your funds are converted back to the wrong token.

Meteora’s Limit Orders vs other LOs.

Meteora’s Limit Orders exhibit a few important characteristics:

• Fully on-chain, permissionlessly available to anyone who integrates DLMM (Jupiter, Titan, Arb Bots, many more), so your orders are the most likely to be filled compared to others.
• Natively Fill with Swaps: As orders are consumed, tokens immediately leave the book. No withdrawal needed. Better than Uni V3 or other AMM limit orders
• No Additional Fees + Bonus Fees: Meteora’s Limit Orders PAYS you when they are filled.
• Placed in existing DLMM Pools: No need to create a DLMM pool when one already exists. Limit Orders are consumed Pro-Rata after existing Liquidity is depleted.

These Limit Orders are available on ALL DLMM Pools available on Mainnet.

Future DLMM Pool creations have to choose between “Farm” or Limit Order. This is necessary to store the on-chain data associated to LO or Farm, we can only support one at a time.

Creating LO Positions

Note: You may create Limit Orders within ANY existing Meteora DLMM pool. It is available within the Dynamic Terminal Interface for DLMM.

In Liquidity Positions, we create them via continuous bin ID. Example: Bin 10 to 80.

For Limit Orders, we will support Discrete Limit Orders and Range Limit Orders:

• Discrete: I want to sell SOL at $100
• Range: I want to sell SOL from $90 — $110

Additionally, while LP positions allow you to deposit both tokens at once in the active bin, LO will ONLY deposit 1 token, even in active bin. I.e. either SOL or USDC, never both

Creating multiple Limit Orders, creates 1 LO Position, with a refundable rent when ALL LOs associated with that position has been closed.

Limit Orders: Composability

We anticipate the creation of many ecosystem projects on-top of Meteora’s Limit Order, as a building block.

Performance-based Team Tokens:

What if you could permanently lock limit orders of tokens, and give it to team members as performance? They would get paid over-time as users “buy” their token, and will never be able to market-dump it and cause the price to go down.

Writing Options with Limit Orders:

Options represent permanently locked limit orders. Deployers can issue token rewards in exchange for locking bids or sells in limit orders, similar to writing a put or a call option on a token.

This creates a core option primitive that is open to all, and thus best applicable for deployer of tokens.

I think there can be a lot of new ideas and projects spawning on Solana, built on Meteora Limit Orders.

The Edge for Retail

Meteora has always been the home of innovation, of powerful fees that give power back to the hands of retail. The LP Army has formed around this tech, leveraging it to make a living.

Limit Orders on Edge represent a push, a push towards making leveraging our extensive technology to help ALL solana traders, win harder.

With LOs, you are able to create a better version of Limit Orders, which are filled permissionlessly by all, and get paid while doing so.

Gud Fee Tek. For the masses.