CLMM Range Order

CLMM’s high flexibility also makes it possible for those advanced trading strategies.

For example, if we concentrate our liquidity around the current price, the current price will be further consolidated and more resilient to the pump and dump from the market. Users could stabilize the price of a trading pool in this way.

In another scenario, if we provide our liquidity within a price range that is lower or higher than the current price (add liquidity from the left or the right), we only need to provide a single type of asset to the pool. When the price enters this range, there will be transactions happening to the position. The asset in the position will be gradually exchanged to its paired asset. When the range is fully crossed, the original asset will be totally transformed into the other asset.

By flexibly utilizing different price range settings, users can easily adapt to different market situations and personal needs. They can even add liquidity from the left or the right to buy low and sell high. All of these are very similar to the limit order trading on a centralized exchange that most crypto traders are familiar with, especially when the price range of a position is set extremely narrow. In CLMM, this is called range order trading. CLMM’s order placement is much more programmable compared to previous AMM models.

The benefits from range order trading to those professional market makers

• Reduce the capital scale of market making: CLMM only requires 50% of the market making cost of AMM or even less to achieve the same level of market depth. This can dramatically reduce the market making cost for those project owners and market makers.

• Stablize the price: CLMM encourages users to add liquidity within the high-efficient price range, which can effectively avoid the rapid pump and dump caused by the robot frontrun. This is vitally important to those newly launched projects.

• Enhance the flexibility: By adding liquidity from the left or the right of the high-efficient price range, market makers could buy on the dips and sell on the rallies flexibly.