Create a Openbook Market ID on Solana: Step-by-step guide
If you want to create a OpenBook Market, also called a Market ID, on Solana, meaning a token pair used to create a liquidity pool, this post is for you.
We’ll show you how to create a OpenBook in just 1 minute without writing ANY code. Even better, it starts at only 0.4 SOL, cheaper than Raydium.
Let’s get straight to the point, but first, we need to cover the basic theory. If you prefer the video version, this is for you.
What Is a Openbook Market?
Before jumping into the creation process, you need to understand what a OpenBook Market ID means and how it works, so you can set it up properly and make the most of your Solana.
A OpenBook Market, or Market ID, means creating a “market” where a pair of tokens can be traded. In other words, Market is the name we use for the “Token Pair” concept on Solana.
This market takes up space on the blockchain and lets transactions for that token pair be processed. The size of the market determines how many transactions it can handle at the same time, which depends on how much we invest when creating it.
If we add liquidity to this token pair on a DEX like Raydium, users will be able to swap freely through the Liquidity Pool.
How to Create a Openbook Market ID on Solana, Step by Step
Our tool lets you adjust the “length” of your OpenBook Market. That makes the process much cheaper, though it comes with the drawbacks mentioned earlier. Here, I’ll show you the byte “sizes” I find most useful: for 0.4 SOL, 1.5 SOL and 2.8 SOL.
Let’s get straight into the step-by-step process for creating a OpenBook Market ID on Solana with no coding. We’ll use our dApp called “Create OpenBook Market”, a tool that lets you create and customize your Market ID in just 1 minute, for only 0.1 SOL.
You’ll see this user interface:
- Open Create OpenBook Market (https://tools.smithii.io/openbook-market/solana)
- Connect your wallet so you can use the tool
- Select the “Base Token“: the token you created that still has no value.
- Select the “Quote Token“. Choose a token with market value, usually SOL or USDC.
- Set the “Minimum Order Size“. This is the minimum amount users will be able to buy of your Token.
- Set the “Price Tick“. This is the smallest amount your Token price can move by.
- Select the advanced options only if you want to use a market below 2.8 SOL.
These are the inputs you need to fill in for each Market ID price tier.
0.4 SOL:
- Event Queue Length: 128
- Request Queue Length: 63
- Orderbook size: 201
1.5 SOL:
- Event queue size: 1400
- Request queue size: 63
- Orderbook size: 450
2.8 SOL:
- Event queue size: 2978
- Request queue size: 63
- Orderbook Length: 909
Keep in mind that you can use other values too, but these are the “standard” ones. The protocol-recommended option is the last one: 2.8 SOL.
Parameter guide for Minimum Order Size and Tick Size in the OpenBook Market ID:
Keep in mind that you can use other values too, but these are the “standard” ones. The protocol-recommended option is the last one: 2.8 SOL.
To finish the process, click Create Market and approve the transactions.
Once the market is created, you’ll see the Market ID. Copy it and save it, since you’ll need it to add liquidity on a DEX.
The most common option is Raydium. Right now, the cost to add liquidity is 0.6 SOL.
If you want to dig deeper into the Minimum Order Size and Tick Size for a OpenBook Market ID on Solana, here is a more complete video guide: https://youtu.be/KVy9jpZwMEA
Here we explain cómo crear Pool de Liquidez para tu Token en Solana.
How Much Does It Cost to Create a Openbook Market on Solana?
The cost of creating a OpenBook Market on Solana depends on its size. That size affects how many transactions the market can process.
In theory, the “optimal” size would cost around 2.7-3 SOL. In practice, though, you can create a Market for less than 0.5 SOL.
In this post, I’ll show you how to do it for 0.4 SOL, but first we need to cover the risks.
Create a Cheap Openbook Market
Creating our OpenBook Market for 5 times less than the usual cost is great, but we can’t ignore the potential issues that can show up under certain conditions.
If you have the budget, you should always use the “Optimal” market. I’ll show you how to set up each option later on.
Based on what users have shared with us, we’ve seen tokens reach a $500k USD market cap with a “Cheap” Market without any issues.
If you’re planning to build a “serious” project instead of a memecoin, I don’t recommend cutting corners on costs.
That said, if you choose the lowest-cost option, you’re better off using a higher-than-normal “minimum order size”. That helps prevent microtransactions from taking up space in the OpenBook Market.
In short, the main issue would be your token having a lot of transactions, with some percentage of them failing because our market cannot process them.
Is it safe to create my Openbook Market ID on Solana?
We’re an established company based in Dubai, with thousands of active users using our tools every month. We interact with the SPL (Solana Program Library) while following every standard, and we provide a simple interface for people without coding experience. In practice, the tool creates a OpenBook Market by acting as the bridge between you and the Solana library. In other words, it only makes the protocol calls required to create the OpenBook Market.
Also, the tool never asks for access to private keys, NFTs, or existing Tokens in the wallet you use, so it is clearly safe to use.
Quick recap
Here’s a visual recap so you leave with a clear picture of how to create a OpenBook Market.
Final thoughts
Creating a OpenBook Market is a necessary step, even if it is expensive. If we can save a few Solana when launching another memecoin, we should take advantage of it.
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