Tutorial — From Zero to Launch
New to Solana tokens? Start here. Then dive into the Experts’ Corner for deep
mechanics of AMMs, routing, and pool math.
What you’ll learn
- Choosing name, symbol, supply & decimals
- Minting a token & metadata basics
- Seeding liquidity and understanding pricing
- Post-launch hygiene (authorities, listings, safety)
- Expert math: AMM curves, slippage, IL, routing
Quick facts
Decimals 6 (common on Solana)
Typical supply 1,000,000,000
Initial liquidity ~2% of supply (example)
Pool objective Balanced launch & fair price discovery
1) Beginner Guide
Follow these steps to get from idea to a tradable token with starter liquidity.
Step 1 — Connect a wallet
- Use a Solana wallet (Phantom, Solflare, Backpack…).
- Ensure you’re on Mainnet and have enough SOL for fees + initial liquidity.
Step 2 — Choose launch strategy
- Name & Symbol: keep it short, memorable, unique.
- Decimals: 6 is standard on Solana (fine-grained pricing).
- Total Supply: commonly 1B. Decide allocation (liquidity, treasury, team, airdrops).
Step 3 — Mint the token
- Prepare metadata (name, symbol, description, image, attributes).
- Upload the image + JSON (Arweave/IPFS via Metaplex standard URIs).
- Mint the token and verify authorities (mint/freeze/update as needed).
Step 4 — Seed initial liquidity
- Decide pool size (e.g., 0.3, 1, 3, 5 SOL…) and tokens sent to the pool.
- The initial price equals
SOL_in_pool / TOKEN_in_pool
.
- Confirm and create the pool; test a tiny swap to verify routing.
Step 5 — Share & monitor
- Publish the mint address, image, and links to explorers/DEXs.
- Monitor liquidity, slippage, and community feedback.
Disclaimer: Token launches are risky. Nothing here is financial or legal advice. Always comply
with your local laws.
2) Name, Symbol, Supply
Clear identity + sane tokenomics = easier adoption.
Naming tips
- Max 10 chars for symbol is common; avoid special characters.
- Check that your name isn’t impersonating known brands.
- Keep visuals consistent (logo, colors, tagline).
Supply strategy
- Popular: 1,000,000,000 total supply, with ~2% to initial liquidity.
- Consider locking team/treasury allocations with vesting or timelocks.
- Document allocations publicly to build trust.
4) Initial Liquidity
Your starting pool defines the launch price and early slippage profile.
Example |
SOL in pool |
Tokens in pool |
Initial price |
Tokens per 1 SOL |
Starter |
0.3 |
20,000,000 |
0.3 / 20,000,000 = 0.000000015 SOL |
≈ 66,666,666 |
Growth |
1 |
20,000,000 |
1 / 20,000,000 = 0.00000005 SOL |
20,000,000 |
Pro |
3 |
20,000,000 |
3 / 20,000,000 = 0.00000015 SOL |
6,666,666 |
Constant-product intuition
x · y = k
price(SOL→TOKEN) ≈ ΔTOKEN / ΔSOL (local slope)
Larger pools reduce price impact for the same trade size.
Rule of thumb: Launch with enough SOL so that a typical buy doesn’t move the price >2–3%. You can
always add liquidity as traction grows.
5) Post-Launch Checklist
- Verify mint & metadata on explorers; share the mint address prominently.
- Decide on mint/freeze/update authorities (retain, lock, or renounce — document your
choice).
- Publish a simple, honest one-pager: supply, allocations, liquidity plan, roadmap.
- Set up socials (X, Telegram, Discord). Pin the contract, links, and safety notes.
- Monitor liquidity, add depth if early slippage is too high.
Experts’ Corner — Deep Dive (General)
Technical reference: AMM models, pricing math, routing, and risk mechanics.
Vendor-neutral and chain-agnostic concepts.
A) AMM Models & Pricing
- Constant-Product (x·y=k): classic model. Mid-price around
y/x
. Good for volatile
pairs; slippage grows with trade size.
- Stable/Hybrid: curve with low curvature near peg (e.g., stables, correlated assets). Uses
invariants mixing constant-sum and constant-product.
- Concentrated Liquidity: LPs place liquidity in ranges (price bins). Higher capital
efficiency; requires rebalancing when price exits range.
- Bonding Curves (launch/IDO style): price increases monotonically with cumulative buys (not an
LP pool). Good for fair mints; different risk profile.
Local price & depth
For x·y=k:
P = y/x
After a buy of Δx (SOL in), new price P' = (y - Δy)/(x + Δx) with (x+Δx)(y-Δy)=k
The larger the pool (x,y), the smaller the curvature for a given Δx, hence lower price
impact.
B) Slippage & Price Impact
For a constant-product pool, executing a trade moves along the curve; the execution price
is the average along the path.
Price impact ≈ 1 - √( x / (x + Δx) ) (buy side, small-trade approximation)
Practical tip: If your average expected buy size is S, target pool depth so that executing S
causes < 2–3% price impact.
C) Impermanent Loss (IL)
IL is the opportunity cost of holding as LP vs. holding assets separately.
Let r = P_final / P_initial.
IL(r) = 2·√r / (1 + r) - 1
- Fees can offset IL if volume is healthy.
- Concentrated liquidity can increase fee capture but raises rebalancing risk.
D) Multi-Pool Routing (General)
Aggregators find best execution across many pools, possibly splitting the order.
- Graph model: tokens = nodes, pools = directed edges with weights derived from effective rate
after fees and expected slippage.
- Pathfinding: shortest path on −log(rate) or dynamic programming; allow multi-hop (A→B→C).
- Splitting: partition trade among top-k paths to minimize overall slippage (convex
optimization or greedy heuristics).
- Constraints: account for pool fees, minimum out, compute budget, and failure modes (stale
pools, paused programs).
Design note: Good routers simulate on-chain math locally to estimate price impact per candidate
route before sending the transaction bundle.
E) Oracles & TWAP
- TWAP: time-weighted average price from cumulative observations; resists momentary spikes.
- External oracles: use for safety checks, liquidations, or price gates; never rely on a single
source.
- Swing protection: optional guards that reject trades beyond a deviation threshold from
reference price.
F) Security, MEV, & Ops
- MEV & sandwiches: larger slippage tolerances increase risk; keep user slippage tight and
pools deep.
- Permissions: document mint/freeze/update authorities; unexpected authority changes undermine
trust.
- Program risk: prefer audited, battle-tested AMM and token programs; watch for deprecations.
Glossary
- AMM: Automated Market Maker (on-chain pricing via invariant/curve).
- Slippage: difference between expected and executed price due to curve movement & liquidity.
- Impermanent Loss: LP underperformance relative to HODL due to price divergence.
- Liquidity: assets deposited in a pool enabling swaps.
- TWAP: time-weighted average price.
- Routing/Aggregation: choosing best path(s) across multiple pools for a swap.