Links

Providing CLAMM Liquidity

A friendly walkthrough of CLAMM mechanics can be found here.
The CLAMM currently does not support v3 range deposits - stay tuned as this is rolled out.

TL;DR

  • Deposit single-sided liquidity or v3 range positions
  • Boosted and optimized yield relative to standard v3 LPing
  • Identical payoff profile to standard v3 LPing

What is the CLAMM pool?

The Dopex Concentrated Liquidity Automated Market Maker ("CLAMM") is a liquidity pool that allows users to deposit single-sided liquidity or v3 range positions. Liquidity may be used to provide liquidity for option traders while idle liquidity remains on underlying v3 DEX where it may continue earning trading fees.

Why would I use the CLAMM pool?

Boosted Yield

Standard v3 LPs typically earn just 0.05% of trading volume in fees.
CLAMM LPs earn premiums which may be more than 40 times fees relative to standard LPing.

Optimized Yield

Standard v3 LPs only earn fees on the portion of liquidity in which the current spot price resides - for range positions, this means only a fraction of liquidity can be active at a given time.
For CLAMM depositors, the entire range of their position may be utilized for options which unlocks liquidity which is otherwise idle. Additionally, liquidity that is not utilized by traders remains on the underlying v3 AMM where it can continue earning trading fees.

Identical Payoff Profile

v3 LPs are inherently exposed to impermanent loss, where the value of their position changes due to automatic rebalancing.
Impermanent loss has an identical payoff profile to short option positions, allowing CLAMM LPs to earn boosted and optimized yield without any added risk exposure.

CLAMM Specifications

Supported v3 AMMs
Uniswap
Markets
ETH/USDC, wBTC/USDC, ARB/USDC
Expiries
1H, 2H, 6H, 12H, 24H
Strike Prices
Depends on tick
Incentives
+/- 2.5% from current spot price
Refer to CLAMM walkthrough to learn how to provide liquidity via the CLAMM.