How to Create OpenBook Market in Solana

Setting up an OpenBook Market on Solana is like carving out your own niche in the expansive Solana blockchain ecosystem. It’s quite straightforward and doesn’t require any coding skills! Plus, it’s more affordable than Raydium, coming in at just 0.8 SOL.

What is an OpenBook Market?

An OpenBook Market, or simply a Market, is essentially a space where token pairs are traded. It’s like defining a ‘Token Pair’ on Solana.

Once your Market is up and running, you’ve got your own little spot on the blockchain where trading happens seamlessly and efficiently.

This market holds a distinct place on the blockchain, enabling transactions specifically for that token pair.

How much does it cost to create an OpenBook Market on Solana?

Now, regarding the cost – it varies depending on the market size. Ideally, you’d aim to spend around 2.8 SOL for the optimal setup. But here’s the good news: you can get started with just 0.8 SOL. Quite a bargain, right?

Drawbacks of a low-cost OpenBook Market

However, before you dive in, there are a few caveats. While saving SOL is great, there are risks involved. Although "cheap" markets have successfully handled tokens worth $500k, if you’re serious about your project, skimping on costs might not be the best strategy.

So, if you opt for the more economical option, you might want to set a higher “minimum order size” to prevent numerous tiny transactions from clogging the system.

In summary, the main issue you could encounter is if your token experiences a high volume of transactions, some might get stuck due to the market’s limited capacity.

Step-by-Step Guide to Creating an OpenBook Market

Our tool allows you to adjust the size of your OpenBook Market, which can help reduce costs – but, as mentioned earlier, there are trade-offs. I’ll guide you through the byte “measurements” that I find most useful: for 0.8 SOL, 1.9 SOL, and 3.2 SOL.

Let’s dive into creating your OpenBook Market ID on Solana, without any coding required! We’ll be using our dApp, “Create OpenBook Market”. It’s incredibly quick – just 1 minute – and costs only 0.1 SOL.

Here’s what the user interface will look like:

Once you’re there, be sure to connect your wallet to start using the software.

Next, select the “Base Token” – this is the token you’ve created that currently has no value.

Then, choose the “Quote Token” – typically SOL or USDC, a token with an established market value.

After that, set your “Minimum Order Size” – this determines the smallest amount users can purchase of your token.

Lastly, set the “Price Tick” – this is the smallest amount that can change your token’s price.

If you’re feeling adventurous, you can explore the advanced options – but only if you’re targeting a market size smaller than 2.8 SOL.

Choose OpenBook market prices based on your needs:

• 0.8 SOL:
  • Event Queue Length: 128
  • Request Queue Length: 63
  • Orderbook Length: 201
• 1.9 SOL:
  • Event Queue Length: 1400
  • Request Queue Length: 63
  • Orderbook Length: 450
• 3.2 SOL:
  • Event Queue Length: 2978
  • Request Queue Length: 63
  • Orderbook Length: 909

The protocol generally recommends the last option, which is 2.8 SOL.

Here’s a useful reference chart to help you configure the parameters for Minimum Order Size and Minimum Price Tick Size:

To complete the process, simply click on “Create Market” and confirm the transactions.

The most popular option is Raydium, where the current cost of adding liquidity is 0.6 SOL.

I hope this guide is helpful in creating a Market ID on the Solana blockchain.

If you have any questions, feel free to reach out – we’re here to help.