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Provide liquidity to Orca’s concentrated liquidity pools, also known as CLMMs, by depositing tokens into selected price ranges. Liquidity providers may accrue trading fees when swaps use their active liquidity. Position outcomes depend on price movement, trading activity, liquidity, range selection, fees, rewards, slippage, transaction costs, and market conditions.
Orca’s concentrated liquidity pools allow users to create pools and provide liquidity within selected price ranges. Understand the mechanics and risks before providing liquidity.

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What is concentrated liquidity?

A CLMM, or Concentrated Liquidity Market Maker, lets liquidity providers allocate liquidity to selected price ranges instead of spreading liquidity across the full supported price range. This gives liquidity providers more control over where their liquidity is active, but also means positions may require more review and management.

Traditional AMM / Full-range liquidity

Liquidity is spread across the full supported price range. This can be simpler to manage, but liquidity is less concentrated around the current price.

Concentrated Liquidity / CLMM

Liquidity is allocated to selected price ranges. This can concentrate liquidity within a chosen range, but positions only accrue swap fees while in range and used by swaps.

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Why provide liquidity on Orca?

CLMMs let liquidity providers choose where their liquidity is active by setting price ranges.
Liquidity providers may accrue trading fees when swaps use their active liquidity.
Liquidity providers can review and adjust positions as price, liquidity, and market conditions change.
Orca supports full-range positions, custom-range positions, and range-order-style positions.

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CLMM vs traditional AMM

Concentrated liquidity does not guarantee fee accrual, returns, or improved outcomes. Positions can move out of range, become one-sided, and experience impermanent loss or divergence loss.

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Position types

Full-Range Position

Spreads liquidity across the full supported price range. This may be simpler to create and may require less range management.

Custom-Range Position

Allocates liquidity to a selected price range. This can concentrate liquidity but may require more monitoring and adjustment.

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Getting started

1

Understand the risks

Learn about impermanent loss, range risk, token price risk, and how concentrated liquidity affects position outcomes.
2

Review position types

Compare full-range and custom-range positions to understand how range width affects fee accrual, token composition, and monitoring needs.
3

Create your position

Follow the relevant guide to deposit liquidity into a supported pool.
4

Review and manage

Use the Portfolio page to review position details, accrued fees and rewards, range status, and available actions.

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Important considerations

  • Liquidity positions are exposed to token price movement.
  • Positions may experience impermanent loss or divergence loss.
  • Custom-range positions only accrue swap fees while in range and used by swaps.
  • Positions can become fully one-sided if price moves outside the selected range.
  • Fee and reward accrual are not guaranteed.
  • Adding, withdrawing, closing, or adjusting positions may involve slippage, transaction fees, priority fees, and changing pool conditions.
  • Review all wallet prompts before signing transactions.

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Next Steps

Beginner's Guide

Learn the basics of liquidity provision on Orca

Full-Range Position

Learn how full-range positions work

Custom-Range Position

Learn how selected price ranges work

Impermanent Loss

Understand price divergence and LP positions