Liquidity FAQ
Frequently asked questions about providing liquidity on Raydium
General
What is APR and where does yield come from?
APR (annual percentage rate) displayed on Raydium is an extrapolation of pool and farm yield based on daily, weekly, or monthly performance. Past performance does not guarantee future results.
Yield comes from:
Maker fees: Fees paid by swaps going through the pool
Farm emissions: Additional token rewards for pools with active farms
For CLMM pools, Raydium displays 3 APR estimation methods. See estimated APR calculations to understand how each works.
Can I withdraw my liquidity at any time?
Yes, you can withdraw liquidity at any time.
For constant product pools: If you staked your LP tokens in a farm, you'll need to unstake them first.
For CLMM pools: Withdraw directly from your position—no unstaking required.
Why did my transaction fail?
Common causes:
Insufficient SOL: SOL is required to pay network fees. Keep at least 0.05 SOL in your wallet.
Slippage tolerance: Transactions fail if the price moves past your slippage tolerance. Try increasing it on the swap page.
Pending approval: Check your wallet for a transaction approval prompt.
Constant product pools
What's the benefit of providing liquidity?
Liquidity providers earn a share of trading fees from every swap in the pool.
When you add liquidity, you receive LP tokens representing your proportional share of the pool. For example, depositing RAY and USDC gives you RAY-USDC LP tokens.
For each swap, a 0.25% fee is taken:
0.22% goes to LP holders
0.03% goes to RAY buybacks
If a farm exists for your pool, you can stake LP tokens to earn additional token rewards.
What are LP tokens?
LP tokens represent your proportional share of a liquidity pool. For example, contributing to the SOL-RAY pool gives you SOL-RAY LP tokens, visible in your wallet.
Are my staked LP tokens still earning fees?
Yes. Maker fees compound directly into the value of LP tokens, even while staked in a farm.
Can I lock my LP tokens?
You can permanently lock liquidity using Burn & Earn, which burns your LP tokens and directs future trading fees to RAY buybacks.
Alternatively, you can manually burn LP tokens or the associated token account. Be aware: burned liquidity cannot be retrieved. Raydium is not responsible for any loss from burning LP tokens.
How are pool vaults credited when new pools are created?
When a new pool is created, a small fraction of initial liquidity is credited to the asset vaults (not minted as LP tokens) to ensure the pool is never empty:
Concentrated liquidity pools
What's the benefit of providing liquidity on CLMM pools?
CLMMs allow you to concentrate liquidity within a custom price range, earning more fees with less capital compared to constant product pools.
The tradeoff: both yield and impermanent loss are amplified within your chosen range. If price moves outside your range, your position stops earning fees.
Where are my LP tokens?
CLMM positions don't use LP tokens. Instead, you receive a position NFT representing your liquidity and price range.
Important:
If the NFT is burned or lost, the associated liquidity cannot be retrieved
Position NFTs can be transferred or sold—the liquidity goes with them
When you close a position, the NFT mint rent is refunded
How do I earn farm emissions on CLMM pools?
No additional action needed. If there's an active farm on the pool, rewards are distributed automatically alongside trading fees—no staking required.
How do I check remaining farm emissions?
On the farm page, hover over the token symbol under pending rewards to see the reward period.
Farm owners can extend rewards but cannot shorten them.
Ecosystem farms
What are ecosystem farms?
Permissionless farms that let any project or user bootstrap liquidity by offering token rewards on any pool.
Can I withdraw rewards after creating a farm?
No. Rewards allocated to farms are final and cannot be withdrawn once the farm is created.
Can I extend or adjust my farm?
You can add rewards or extend the farming period starting 72 hours before the current period ends. The minimum extension is 7 days.
To reduce the rewards rate, this can only be done within 72 hours of the current period ending, and the period must be extended by at least 7 days.
Errors
I can't see my pool
Pools take a few minutes to appear on the UI after creation.
If you created a pool with a delayed start time, enter the base and quote tokens on the swap page to see a countdown.
Tip: Toggle "Show Created" at the top of the liquidity list to quickly find your pools.
Pool already exists error
A pool already exists for this token pair (and fee tier, for CLMM). You can provide liquidity to the existing pool instead of creating a new one.
Token verify error / Freeze authority enabled
Your token has freeze authority enabled. Disable it programmatically or use a tool like Squads.
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