An AMM design where liquidity providers concentrate their capital within specific price ranges instead of across the full 0-to-infinity range. CLMMs dramatically improve capital efficiency—LPs earn more fees per dollar deposited within their active range. If the price moves outside the range, the position becomes inactive. Orca Whirlpools and Raydium CLMM are leading implementations on Solana.
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An AMM design where liquidity providers concentrate their capital within specific price ranges instead of across the full 0-to-infinity range. CLMMs dramatically improve capital efficiency—LPs earn more fees per dollar deposited within their active range. If the price moves outside the range, the position becomes inactive. Orca Whirlpools and Raydium CLMM are leading implementations on Solana.
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Think of it as a market mechanic used to price, route, or move capital through liquidity apps.
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AMMs, routing, liquidity, lending, and trading infrastructure.
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CLMM (Concentrated Liquidity Market Maker) (clmm) Category: DeFi Definition: An AMM design where liquidity providers concentrate their capital within specific price ranges instead of across the full 0-to-infinity range. CLMMs dramatically improve capital efficiency—LPs earn more fees per dollar deposited within their active range. If the price moves outside the range, the position becomes inactive. Orca Whirlpools and Raydium CLMM are leading implementations on Solana. Aliases: CLMM, Concentrated Liquidity Related: AMM (Automated Market Maker), Tick, Liquidity Pool
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A protocol that enables token swaps using algorithmic pricing against pooled liquidity instead of matching individual buyers and sellers. AMMs use mathematical formulas (typically constant product x*y=k) to determine prices based on the ratio of tokens in a liquidity pool. On Solana, major AMMs include Raydium, Orca, and Meteora.
A PoH entry with zero transactions that advances the clock. There are 64 ticks per slot by default, each representing a fixed number of SHA-256 hash iterations. Ticks establish the passage of time even when no transactions are being processed, maintaining the PoH chain continuity.
A smart-contract-held reserve of two or more tokens that enables trading via an AMM. Users deposit token pairs in specified ratios to become liquidity providers and earn trading fees. Pools are identified by their token pair and fee tier. Pool depth (total value locked) determines price impact for trades.
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A concentrated liquidity AMM design pioneered by Meteora on Solana that organizes liquidity into discrete price bins rather than continuous tick ranges. Each bin holds liquidity at a single price, and trades move sequentially through bins. DLMM pools feature dynamic fees that adjust based on volatility, and LPs can choose from preset distribution shapes (spot, curve, bid-ask) to match their market outlook.
A protocol that enables token swaps using algorithmic pricing against pooled liquidity instead of matching individual buyers and sellers. AMMs use mathematical formulas (typically constant product x*y=k) to determine prices based on the ratio of tokens in a liquidity pool. On Solana, major AMMs include Raydium, Orca, and Meteora.
The simplest and most widely used AMM model, based on the formula x * y = k where x and y are token reserves and k is an invariant. Every swap changes the ratio of reserves while keeping the product constant, producing a hyperbolic price curve. CPMMs provide liquidity across the full price range (0 to infinity) but are less capital-efficient than concentrated liquidity designs. Raydium's standard pools use this model.
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A protocol that enables token swaps using algorithmic pricing against pooled liquidity instead of matching individual buyers and sellers. AMMs use mathematical formulas (typically constant product x*y=k) to determine prices based on the ratio of tokens in a liquidity pool. On Solana, major AMMs include Raydium, Orca, and Meteora.
A PoH entry with zero transactions that advances the clock. There are 64 ticks per slot by default, each representing a fixed number of SHA-256 hash iterations. Ticks establish the passage of time even when no transactions are being processed, maintaining the PoH chain continuity.
A smart-contract-held reserve of two or more tokens that enables trading via an AMM. Users deposit token pairs in specified ratios to become liquidity providers and earn trading fees. Pools are identified by their token pair and fee tier. Pool depth (total value locked) determines price impact for trades.
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A protocol that enables token swaps using algorithmic pricing against pooled liquidity instead of matching individual buyers and sellers. AMMs use mathematical formulas (typically constant product x*y=k) to determine prices based on the ratio of tokens in a liquidity pool. On Solana, major AMMs include Raydium, Orca, and Meteora.
A smart-contract-held reserve of two or more tokens that enables trading via an AMM. Users deposit token pairs in specified ratios to become liquidity providers and earn trading fees. Pools are identified by their token pair and fee tier. Pool depth (total value locked) determines price impact for trades.
A token issued to liquidity providers representing their proportional share of a pool's reserves and accrued fees. LP tokens can be burned to withdraw the underlying assets. The value of LP tokens changes as the pool's token ratios shift and fees accumulate. LP tokens are often stakeable in yield farming programs for additional rewards.
The exchange of one token for another through a DEX, either via an AMM pool or an order book. The user specifies an input token/amount and receives output tokens at the current market rate minus slippage and fees. On Solana, swaps settle in a single transaction (~400ms) with fees typically 0.01-0.3% per trade.