Intro on CLMM Pool

Before you begin creating a pool or farm, we strongly recommend reading this entire guide thoroughly.

For those unfamiliar with the concept of concentrated liquidity, we suggest exploring the topic further by reading this article.

Creating a CLMM pool on Cropper is similar to establishing a traditional liquidity pool and farm, but it caters specifically to advanced market-making. CLMM pools enhance capital efficiency for liquidity providers and minimize slippage during swaps.

Important Considerations for CLMM Pool:

  • Token Selection: Any token from the Solana token list is eligible for use in a CLMM pool. Typically, pools involve two tokens — a base and a quote token.

  • Unique Pairs: To avoid redundancy, only one token pair per fee tier is allowed on Cropper.

  • Fee Tiers: Pool creators have eight fee tiers to choose from, main ones are as follow:

    • 0.01% - ideal for very stable assets

    • 0.02% - 0.05% - suited for pegged assets and high-volume pairs

    • 0.16% - 0.3% - appropriate for most pairs

    • 1% - 2% - designed for exotic pairs

  • Starting Price: This is defined as the amount of quote tokens required to buy one base token.

  • Initial Price Range: This is the price interval where the pool creator’s liquidity will initially be concentrated upon the creation of the pool.

Please continue to the next section of this guide for detailed instructions on managing your CLMM pool and farm effectively.

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