LPSwap is a hackathon project designed to leverage the concentrated liquidity features of V3-style liquidity pools to provide zero-slippage, zero-fee token swaps. The core idea is to execute swaps entirely within a narrow price range of the liquidity pool, effectively bypassing price impact and trading fees.

Currently, LPSwap supports Meteora's DLMM (Dynamic Liquidity Market Maker) pools on Solana. Meteora DLMM divides liquidity across discrete price bins, allowing swaps within a single bin to happen at a fixed price, similar to limit orders on an order book. This enables LPSwap to simulate a centralized exchange-like experience in a fully decentralized environment.

In addition, the design allows users to act as temporary liquidity providers. Because of this, any fees collected during the swap are returned to the user, effectively making the swap fee-free. On testnet, the system also assumes zero gas and signature costs, providing a near-zero cost swap experience.

LPSwap uses a frontend-driven architecture with no backend required. The system consists of the following components:

• Frontend Application (React + TypeScript): Hosts the UI and main logic. Integrates the @meteora-ag/dlmm SDK to interact directly with on-chain DLMM pools.

• User Wallet (e.g., Phantom): Connected via Solana Wallet Adapter. Handles transaction signing and provides user authentication.

• Meteora DLMM SDK: Facilitates interaction with DLMM pools. Exposes methods for retrieving pool information, creating LP positions, adding/removing liquidity, and simulating swaps.

• Solana Smart Contracts: The DLMM pools themselves are on-chain programs. The frontend uses the SDK to build and send transactions to these programs, executing the actual swap logic on-chain.

This setup ensures a trustless, backend-free, and efficient trading experience. All transactions are user-initiated and executed directly on Solana.

1. Pool Selection: Users choose a DLMM pool (e.g., SOL/USDC) from a list fetched via Meteora's API.

2. Initialize Pool Info: The frontend retrieves bin data and current market price via the SDK (DLMM.create(...)).

3. User Input: Users enter the amount and token direction (e.g., sell SOL to get USDC).

4. Bin Strategy Calculation: Based on the current active bin and user input, the frontend selects a narrow range (e.g., [current bin, current bin+1]) to contain the swap.

5. Create LP Position (One-Sided Liquidity):

const tx = await dlmmPool.initializePositionAndAddLiquidityByStrategy({
  user: walletPublicKey,
  positionPubKey: new Keypair().publicKey,
  totalXAmount: amountToSellX,
  totalYAmount: new BN(0),
  strategy: { strategyType: StrategyType.Spot, minBinId, maxBinId }
});
await sendTransaction(tx, connection);

6. Zero-Slippage Execution: If the swap occurs entirely within the current bin, the price remains constant.

7. Position Monitoring: The frontend periodically checks the user's positions to track swap progress.

8. Withdraw Liquidity:

const removeTx = await dlmmPool.removeLiquidity({
  position: positionPubKey,
  user: walletPublicKey,
  fromBinId: strategy.minBinId,
  toBinId: strategy.maxBinId,
  bps: new BN(10000),
  shouldClaimAndClose: true
});
await sendTransaction(removeTx, connection);

9. Swap Completed: The user receives their target token, and the temporary LP position is closed automatically.

• Slippage-Free Swaps: By providing one-sided liquidity in a single price bin, users bypass traditional AMM price impact.

• Zero Fees: Users earn back swap fees as LPs, and testnet operation assumes zero gas/signature cost.

• Fully Frontend-Driven: All logic runs in the browser, no backend or relayer required.

• Pool List Component: PoolDataTable fetches DLMM pools and displays them.

• Swap Component: SwapComponent handles user input, pool selection, and swap execution.

• State Management: Uses Zustand (useMeteOraStore) to manage selected pool, user input, and transaction state.

• SDK Usage:

  • DLMM.create to init pool handle
  • getActiveBin to find the best bin
  • initializePositionAndAddLiquidityByStrategy to add liquidity
  • removeLiquidity to withdraw and close position

• Position Watcher: PositionInfo polls positions and triggers auto-withdrawal when swap completes.

1. AI Bin Strategy: Train a model to automatically select optimal bin ranges based on liquidity, price history, and volatility.

2. Backend Relayer & Auto-Signer: Introduce an optional backend to monitor and execute transactions automatically after initial user authorization. Enables gasless, signature-free, "one-click" swaps.

LPSwap aims to deliver a CeFi-like swap experience with the security and transparency of DeFi. Future iterations will continue to optimize performance, automation, and intelligence in DeFi trading.