Earn yield by providing liquidity to Orca’s concentrated liquidity pools (CLMMs). Concentrate your capital within specific price ranges for enhanced efficiency and returns.Documentation Index
Fetch the complete documentation index at: https://docs.orca.so/llms.txt
Use this file to discover all available pages before exploring further.
Orca’s concentrated liquidity pools replace traditional order books, allowing anyone to create pools and earn trading fees. Understand the mechanics and risks before providing liquidity.
What is Concentrated Liquidity?
A CLMM (Concentrated Liquidity Market Maker) lets you allocate capital to specific price ranges instead of spreading it across all prices. This targeted approach maximizes capital efficiency and potential yields.Traditional AMM (CPMM)
Liquidity spread across all prices from 0 to infinity. Less efficient, but simpler to manage.
Concentrated Liquidity (CLMM)
Liquidity focused on chosen price ranges. More efficient, higher potential yields, requires monitoring.
Why Provide Liquidity on Orca?
Enhanced Capital Efficiency
Enhanced Capital Efficiency
Focus your capital on profitable price ranges instead of spreading it across the entire price curve. Get more yield per dollar deposited.
Increased Earning Potential
Increased Earning Potential
By targeting high-volume trading ranges, you can earn significantly more from transaction fees than traditional full-range pools.
Flexible Management
Flexible Management
Adjust your price ranges in response to market conditions. Optimize returns and manage risk more effectively than with fixed positions.
Advanced Strategies
Advanced Strategies
CLMMs support advanced techniques like limit orders and take-profit orders, providing greater versatility for sophisticated LPs.
CLMM vs Traditional AMM
| Feature | Traditional CPMM | Orca CLMM |
|---|---|---|
| Liquidity distribution | Spread across all prices | Concentrated in chosen range |
| Capital efficiency | Lower | Higher |
| Potential fees earned | Less per $ deposited | More per $ deposited |
| Management needed | Minimal | More active monitoring |
| Impermanent loss risk | Lower | Can be higher if poorly managed |
Position Types
Full-Range Position
Best for beginnersSpread liquidity from 0 to infinity. Lower maintenance, always in range, but less capital efficient.
Custom-Range Position
For experienced LPsConcentrate liquidity in a specific range. Higher potential returns, requires active management.
Getting Started
Understand the risks
Learn about impermanent loss and how concentrated liquidity affects your returns.
Choose your strategy
Decide between full-range (passive) or custom-range (active) positions based on your goals.
Monitor and manage
Track your positions and adjust as needed using the Portfolio page.
Next Steps
Beginner's Guide
Complete introduction to liquidity provision on Orca
Full-Range Position
Create your first simple position
Custom-Range Position
Advanced concentrated liquidity
Impermanent Loss
Understand the key risk of LP