@loopll

Orca's Whirlpools implement concentrated liquidity (CLMM) on Solana, boosting capital efficiency by allowing LPs to focus liquidity in specific price ranges—up to 4000x better than traditional AMMs. This reduces slippage for traders and increases fee earnings for active LPs, enhanced by Solana's low fees enabling frequent rebalancing (unlike costlier EVM chains like Uniswap v3). Fee tiers (0.01%–1%+, e.g., 0.01%, 0.05%, 0.3%) link to tick spacing: narrower for stable/low-vol pairs (higher precision/efficiency), wider for volatile pairs (broader coverage, risk offset). Adaptive fees dynamically raise rates in volatility for extra LP yields. Competition across tiers drives efficient liquidity allocation.

0 reply

0 recast

0 reaction