Providing Concentrated Liquidity (CLMM)
How to provide liquidity in a Concentrated Liquidity pool
Impermanent loss can be significant in CLMM pools. A positive return is not guaranteed! Make sure to understand the risks before providing concentrated liquidity.
If you haven't heard about Concentrated liquidity we recommend reading the following article.
Select ‘Liquidity’ on the navigation menu.
After connecting a wallet, either input a token mint/pool address/ticker in the search bar or browse the pool list, then click 'Deposit' on the desired pool.
3. Set the price range for the position using the sliders on the graph, manually entering the min price and max price, or clicking the + and - buttons.
Note: Price base token can be chosen in the top right corner of the window if preferred when selecting price range. For example, you can view the price as USDC per SOL, or SOL per USDC.
4. Enter the deposit amounts for each token. Note that amounts must match the deposit ratio shown, and which is determined by the selected price range.
5. Click 'Create position', double-check the details of the position, then click 'Confirm Deposit'.
6. That's it! An NFT that represents the position will now be visible in your wallet!
IMPORTANT: If an NFT is lost, sold, or burnt, the liquidity it represents will also be lost!
How to manage a position
To check or manage a position, click 'Portfolio' in the navigation menu, all details can be viewed in the position drop-down by clicking 'View more'.
Liquidity can be added or removed from an existing position by clicking the + or - buttons. However, if you want to adjust the price range, you will need to create a new position.
When withdrawing liquidity, users have the option to keep their positions open. This allows them to redeposit into the position later, saving on fees associated with position creation, such as the Metaplex protocol fee of 0.01 SOL.
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