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Solana Native DEX & AMM

Raydium CLMMConcentrated Liquidity Explained

Raydium CLMM lets LPs concentrate capital in price ranges for higher efficiency — with fee tiers as low as 1bps on the tightest pools.

raydium.io // live Online
Cumul. Volume$1T+ (Jul 2025)
TVL~$1–1.4B
Monthly Swap Vol.$21B+
Perp Vol (30d)+$400M
Pool TypesCLMM · AMM · CPMM
Min. Swap Fee1bps CLMM
RAY Token Supply555M (263M circ.)
Record Day$16B (Jan 19 2025)
LaunchedFeb 2021 · Solana
Overview

Raydium CLMM

Raydium's CLMM (Concentrated Liquidity Market Maker) is the most capital-efficient pool type on Raydium, inspired by Uniswap v3's concentrated liquidity model. Rather than spreading liquidity uniformly across all prices (0 to infinity), CLMM LPs choose a specific price range to deploy capital. When the market price is within your range, you earn fees at a higher rate per dollar deposited. When price moves outside your range, you stop earning fees.

CLMM pools on Raydium offer multiple fee tiers — from 1bps (0.01%) for extremely correlated pairs like USDC/USDT, up to 200bps (2%) for highly volatile pairs. The right fee tier depends on expected volatility and competition from other LPs.

// protocol.stats
TypeAMM / DEX · Solana
LaunchedFebruary 2021
Cumul. Volume$1T+ (Jul 2025)
Record Single Day$16B (Jan 19 2025)
TVL~$1–1.4B
Monthly Vol.$21B+
Pool Types3 (AMM/CLMM/CPMM)
Fee Range1–25bps
RAY Price (Apr 2026)~$0.64–0.75
LaunchLabPrimary Solana TGE
Features

Why Trade on Raydium?

Solana's largest native AMM — deep liquidity, three pool types, concentrated liquidity, and the primary launchpad for new Solana tokens.

[01]
🎯
Price Range Focus
Deploy capital only where you expect the price to trade — not spread across all prices.
[02]
💰
Higher Fee Efficiency
Earn fees only when in-range, but at a much higher rate per dollar vs standard AMM.
[03]
📉
1bps Minimum Fee
Stable pairs can use 1bps fee tier — one of the lowest in DeFi.
[04]
🔢
Multiple Fee Tiers
1bps, 5bps, 25bps, 100bps, 200bps — choose based on pair volatility.
[05]
⚠️
Active Management
If price moves out of your range, rebalance your position to re-enter the fee-earning zone.
[06]
📊
IL Amplification
Concentrated liquidity amplifies impermanent loss compared to full-range AMM positions.
Guide

How to Use Raydium CLMM

Step-by-step walkthrough — from wallet connection to your first swap or liquidity position.

01

Navigate to Liquidity on raydium

io. Click Liquidity and then select a CLMM pool (look for the CLMM badge).

02

Choose a CLMM Pool

Select the token pair. Check the current APY and fee tier. Major pairs like SOL/USDC have multiple fee tier options.

03

Set Your Price Range

Choose the minimum and maximum price for your position. A narrow range earns more fees per dollar but requires more frequent rebalancing.

04

Deposit Tokens

Enter amounts for both tokens. CLMM requires both tokens in the proportion determined by your range and current price.

05

Monitor and Rebalance

If the market price moves outside your range, your position earns zero fees. Remove liquidity and create a new position centered on the new price.

Start Swapping on Raydium

Deep Solana liquidity, three pool types, 1bps fees on CLMM, and $1T+ in proven cumulative volume.

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FAQ

Questions About Raydium CLMM

What is CLMM on Raydium?
+
CLMM stands for Concentrated Liquidity Market Maker. It allows liquidity providers to focus their capital within a specific price range instead of across all prices. This increases fee earnings when price is in-range but requires active management.
What fee tier should I use for SOL/USDC CLMM on Raydium?
+
For SOL/USDC, the 0.05% (5bps) tier is typically the most traded due to balancing LP earnings vs. trader costs. The 0.25% tier can earn more per trade but may attract less volume. Check current APY by tier on raydium.io.
How wide should my CLMM price range be?
+
Wider range = lower fee earnings but position stays in range longer. Narrower range = higher fee earnings but needs frequent rebalancing. For volatile assets like SOL, a ±20-40% range from current price is a common starting point for less active LPs.
What happens when my CLMM position goes out of range?
+
When market price moves outside your min/max range, your position earns zero fees. Your liquidity converts fully to the cheaper token of the pair. You can either wait for price to return or remove and create a new in-range position.
Is CLMM better than standard AMM on Raydium?
+
For active LPs who can monitor positions: CLMM can earn significantly higher fees per dollar. For passive LPs who want to deposit and forget: standard AMM (or full-range CLMM) may be more practical despite lower efficiency, since you avoid being out-of-range for extended periods.
Reviews

Trader Feedback

Active LP
★★★★★

"CLMM on Raydium is excellent once you understand range management. Running a tight SOL/USDC range, rebalancing weekly, and the fee APY outperforms full-range positions significantly. The interface for adjusting ranges is clean."

Passive LP
★★★★☆

"Tried CLMM, got burned by going out of range during a SOL rally. Now I use wider ranges (±35% from current price) that need less rebalancing. Still earn more than standard AMM but with manageable overhead."

DeFi Developer
★★★★★

"Raydium\'s CLMM implementation is technically solid. The fee tier selection and tick spacing match Uniswap v3\'s model but with Solana\'s speed and cost advantages. Building LP tooling on top of it is straightforward."

Ready to Trade on Solana?

Raydium offers the deepest native liquidity on Solana — CLMM, standard AMM, CPMM pools, and LaunchLab.

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