Orca on Solana for Advanced LPs

CLMMs enable liquidity providers (LPs) to concentrate their capital within specific price ranges instead of spreading it across the entire price spectrum. This approach results in more densely packed liquidity within the selected ranges, typically around the current market price. This enhances capital efficiency and reduces both price impact and slippage.

Each price range operates like its own CPMM price curve. However, unlike CPMMs, a CLMM position can consist entirely of just one of the token pairs. This flexibility allows LPs to optimize their strategies based on market conditions, providing greater control and potential returns.