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01 · Liquidity

Create a Cheap Raydium LP

Why default Raydium pools cost 3+ SOL, how CPMM saves you 2.5 SOL, and how to set the right initial price for your token.

⏱ 8 min read🟢 BeginnerUpdated: Jan 2026

In this guide

  1. Why is a Raydium pool so expensive?
  2. CPMM: the cheaper alternative
  3. How to calculate your initial price
  4. Step-by-step: creating your pool
  5. Next step: burning LP tokens

Why is a Raydium pool so expensive?

The default Raydium AMM v4 requires you to first create an OpenBook market — an on-chain order book that costs approximately 2.8 SOL in rent alone. Add Raydium's own pool creation fee (~0.4 SOL) and you're looking at 3.2+ SOL just to open the pool, before you add any liquidity.

⚠️
For a small launch, paying 3+ SOL before a single person can buy your token is a significant capital risk. If the launch fails, you lose that SOL.
OpenBook market creation~2.8 SOL
Raydium AMM v4 pool fee~0.4 SOL
Total (default method)~3.2 SOL

CPMM: the cheaper alternative

Raydium's Constant Product Market Maker (CPMM) is a newer pool type that does not require an OpenBook market. It uses the same x*y=k formula but operates directly without an order book, cutting your pool creation cost to under 0.5 SOL.

FeatureAMM v4 (Standard)CPMM
OpenBook requiredYes — 2.8 SOLNo
Pool creation cost~3.2 SOL~0.15–0.4 SOL
DexScreener compatibleYesYes
LP burning supportedYesYes
Recommended for memecoinsLegacyYes
✅
CPMM pools appear exactly the same as AMM v4 on DexScreener. Traders cannot tell the difference — only your wallet balance will thank you.

How to calculate your initial price

The initial token price is determined entirely by the ratio of SOL to tokens you deposit in the pool. There is no other way to set it. The formula:

Price = SOL deposited ÷ Tokens deposited
Example: 5 SOL ÷ 500,000,000 tokens = $0.00000001 per token (at $150/SOL)

To hit a specific market cap at launch, work backwards: decide your target MC, divide by your total supply to get price, then calculate how much SOL you need to deposit to achieve that price.

💡
Market cap at launch = Price per token × Total supply. A 5 SOL deposit with 500M token supply at $150/SOL = ~$1.5 launch MC. Most successful memecoins launch between $5K–$50K MC.

Step-by-step: creating your CPMM pool

Use the LIQUIDITY tab in the Workshop, or follow these steps directly on Raydium:

1
Go to raydium.io/liquidity/create-pool

Connect your Phantom wallet. Make sure you're on Mainnet.

2
Select "CPMM" pool type

At the top of the creation page, choose CPMM — not AMM v4 (Standard).

3
Paste your token CA and select SOL as the pair

Search for your token by contract address. Pair it with SOL (native).

4
Set your token amount and SOL amount

This ratio determines your launch price. Double-check your calculation before proceeding.

5
Set start time

You can schedule the pool to open at a specific time. Use this to coordinate your community announcement.

6
Confirm and sign the transaction

Raydium will show you the total cost. Expect ~0.15–0.4 SOL. Sign in Phantom and wait for confirmation.

🚨
Do not close the browser until Raydium confirms the pool is live. A failed transaction can leave your tokens in an ambiguous state.

Next step: burn your LP tokens

After creating the pool, Raydium mints LP tokens to your wallet representing your ownership of the pool's liquidity. As long as you hold these, you can withdraw liquidity at any time — which traders interpret as a rug pull risk.

The solution is to burn your LP tokens permanently, signaling that no one can ever remove the liquidity. DexScreener will then display the 🔒 LP Burned badge on your token page.

Ready to burn your LP?

Read the next guide or use the BURN tab in the Workshop directly.

Read: Burning LP Tokens →
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