Brief CLAMM Summary

CLAMM pools do not behave the same as the legacy constant product pools you have removed your liquidity from. Below are some key differences for liquidity providers to be aware of, and further reading is recommended:
  • Liquidity is concentrated in a chosen price range.
  • Some ranges need active management.
  • Yield and divergence loss are amplified proportionally by the capital efficiency (leverage) of narrower price ranges.
  • When out of range a position is dormant and will not earn yields.
  • CLAMM position are non-fungible, and represented by an NFT instead of LP tokens.
    DO NOT sell or burn this NFT. You can send it to another wallet to transfer your position, but (whale forbid) please don't burn or sell it, or you'll lose your liquidity!
  • You can choose from a range of pools for each pair, with different fee rates (the fee rate is the same as a spread on a CLOB).
  • Anyone can create a CLAMM pool on Orca (see Creating a Pool)
Unless you select a Full Range Position you cannot deposit your liquidity and forget about it. If you don’t have time to learn about managing CLAMM liquidity, you may find (following research) that a vault product built on Orca’s liquidity is better suited for you.