> For the complete documentation index, see [llms.txt](https://docs.j.tools/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.j.tools/concepts/dexes-and-liquidity.md).
# DEXs and liquidity
A token by itself cannot be bought or sold. Someone has to put both sides of the trade somewhere a market can match them. On Solana that place is a liquidity pool on a decentralized exchange (DEX). This page explains what a pool is, how your token becomes tradable, and which venues J Tools works with.
```mermaid
flowchart LR
A["Your token"] --> C
S["SOL"] --> C["Create a liquidity pool"]
subgraph Pool["Your pool"]
C --> H["Pool holds the pair"]
end
H --> T["Traders swap against it"]
T --> R["Router finds the best price"]
R --> M["Live, tradable market"]
classDef brand fill:#EF2A2A,stroke:#EF2A2A,color:#ffffff,font-weight:bold;
classDef soft fill:#1f2937,stroke:#374151,color:#e5e7eb;
class A,S,H,T,R soft;
class C,M brand;
```
## What a liquidity pool is
A liquidity pool is an on-chain account holding two tokens at once, for example your token paired with SOL (or USDC). Traders swap against the pool instead of against another person. The pool's ratio of the two tokens sets the price, and every buy or sell shifts that ratio.
When you create a pool, you deposit both sides yourself. That first deposit is what makes the token tradable. From that moment, anyone can swap into or out of it, and the price moves as they do. Once a market exists, you can trade against it with [Swap](/tools/trade/swap.md) and watch your own positions in [My Pools](/tools/liquidity/my-pools.md).
[**Open the tools in the app →**](https://j.tools/en/tools)
The size of the deposit matters. A thin pool moves a lot on small trades (high slippage), while a deeper pool stays steadier. There is no single right number, it depends on how much volume you expect and how tight you want the price to hold.
{% hint style="info" %}
Pairing against SOL is the common default on Solana. If you want a SOL pair but only hold native SOL, the free [WSOL Wrapper](/tools/utilities/wsol-wrapper.md) converts SOL to wrapped SOL (an SPL token a pool can hold) and back.
{% endhint %}
## How a token gets its first market
There are two routes, and they fit different launches.
{% stepper %}
{% step %}
### Direct pool on a DEX
You already have an SPL token (for example from [Token Creator](/tools/launch/token-creator.md)) and you want to open the market yourself. Use [Create LP](/tools/liquidity/create-lp.md), pick a DEX and a pair, deposit both sides, and sign. The pool is live and tradable right away.
{% endstep %}
{% step %}
### Bonding-curve launch, then graduation
You launch on a Pump.fun style bonding curve, where the token trades on an algorithmic price curve from the first buy. No pool deposit is needed up front. Once the curve fills (graduation), the token migrates to a DEX pool, usually PumpSwap.
{% endstep %}
{% endstepper %}
Most teams that want a normal token and full control over the pool take the first route. The bonding curve suits fast, low-setup launches where the market forms as people buy in.
## Supported venues
J Tools works with Raydium (V4, CPMM, and CLMM), Meteora, Orca (Whirlpool), and PumpSwap. The right one usually comes down to where your token's liquidity already sits and whether you launched on a bonding curve. The tabs below give a quick note on each, and the [Supported DEXs](/reference/supported-dexes.md) reference lists every venue with its pool types and what J Tools can do on each.
[**Open Create LP in the app →**](https://j.tools/en/tools/create-lp)
{% tabs %}
{% tab title="Raydium" %}
The primary Solana DEX by volume, and the default choice for most pairs. J Tools supports its V4 and CPMM pool types here (the concentrated CLMM type has its own tab). Raydium is also where many bonding-curve tokens land after they graduate, so a pair you want may already exist.
{% endtab %}
{% tab title="Raydium CLMM" %}
Raydium's concentrated-liquidity pool type. Instead of spreading your deposit across the whole price range, you focus it inside a band, so the same capital provides deeper liquidity where trading actually happens. In J Tools, CLMM is a pool type you pick inside the single [Create LP](/tools/liquidity/create-lp.md) page, not a separate tool.
{% endtab %}
{% tab title="Meteora" %}
J Tools supports Meteora for opening pools and for swaps. Pick it in [Create LP](/tools/liquidity/create-lp.md) when you want a Meteora pair, or route a trade through it with [Swap](/tools/trade/swap.md) when an existing Meteora pool is where the token's liquidity already sits.
{% endtab %}
{% tab title="Orca (Whirlpool)" %}
A concentrated-liquidity DEX built on Whirlpool pools. Like Raydium CLMM, your deposit concentrates inside a chosen price band rather than across the full curve. Supported for opening pools and for swaps.
{% endtab %}
{% tab title="PumpSwap" %}
The DEX where Pump.fun tokens land after they graduate from the bonding curve. Supported for pools and swaps. One thing to know: a PumpSwap LP mint can be a Token-2022 token, which some naive SPL scanners misread, so trust J Tools' own readouts over a generic explorer here.
{% endtab %}
{% tab title="Pump.fun curve" %}
Not a pool, a bonding curve. The token trades on an algorithmic price curve from the first buy, with no upfront liquidity deposit. When the curve fills, the token graduates and migrates to a DEX pool. This is the venue behind curve-based launches and the early trading that follows.
{% endtab %}
{% endtabs %}
{% hint style="warning" %}
Liquidity in a brand-new pool can be pulled by whoever controls the LP position. If you are the creator and want holders to trust the pool, plan for what happens to your LP tokens, and lock your token's authorities first with [Make Immutable](/tools/secure/make-immutable.md).
{% endhint %}
## Pools and fees
Opening a pool has two separate costs. There is the Solana network fee (gas), which the network charges to process the transaction. And there is the J Tools platform fee for the tool itself. The network fee is never platform revenue. Both are shown in the fee summary before you confirm.
{% hint style="warning" %}
**About fees.** Every action has two costs: the Solana **network fee** paid to validators, and the **J Tools platform fee**. The platform fee always shows in the app before you confirm, and nothing is charged until you sign. Fees can change over time, so trust the in-app summary rather than a number you saw once.
{% endhint %}
## FAQ
Do I need a pool to launch a token?
Not always. A standard SPL token from [Token Creator](/tools/launch/token-creator.md) exists on-chain without one, but nobody can trade it until a market exists. Either open a pool with [Create LP](/tools/liquidity/create-lp.md), or launch on a bonding curve that graduates into a pool later.
Which DEX should I pick?
Raydium is the usual default because it carries the most volume. Pick Meteora or Orca if that is where your token's liquidity already lives, or if you specifically want a concentrated-liquidity pool. If your token came from a Pump.fun launch, it most likely graduated onto PumpSwap.
What is the difference between a standard pool and a concentrated one?
A standard pool spreads your deposit evenly across all prices. A concentrated pool (Raydium CLMM or Orca Whirlpool) lets you focus the deposit inside a price band, so the same capital gives deeper liquidity near the current price. Concentrated pools can earn more on fees but need you to set a sensible range.
Does J Tools hold my liquidity or my keys?
No. You deposit from your own wallet and sign every transaction yourself. The platform never takes custody of your tokens, your LP position, or your keys.
## Related
{% content-ref url="/pages/QT0nYfDbGpJo4Cm5Tbs6" %}
[Create LP](/tools/liquidity/create-lp.md)
{% endcontent-ref %}
{% content-ref url="/pages/wzTSdddfnEFKadxZXdPR" %}
[Swap](/tools/trade/swap.md)
{% endcontent-ref %}
{% content-ref url="/pages/EySFBE8ku57pLjq1HfJQ" %}
[My Pools](/tools/liquidity/my-pools.md)
{% endcontent-ref %}
{% content-ref url="/pages/5HPNcHNvbGOUbEIcM9Ml" %}
[Supported DEXs](/reference/supported-dexes.md)
{% endcontent-ref %}
{% content-ref url="/pages/9r2rW9r83CsCoJpYE8gL" %}
[Token Creator](/tools/launch/token-creator.md)
{% endcontent-ref %}
{% content-ref url="/pages/gbx1RbByQOVKZzt0PQkP" %}
[Make Immutable](/tools/secure/make-immutable.md)
{% endcontent-ref %}
{% hint style="success" %}
**J Tools is non-custodial.** We never hold your private keys and never ask for them. Every transaction is built in your browser and signed by your own wallet. If any page ever asks you to paste a private key, stop, close it, and let us know.
{% endhint %}
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