CLMM
Last updated 17 October 2026Last verified 17 October 2026
What is a CLMM (Concentrated Liquidity Market Maker)?
Concentrated Liquidity Market Maker. An AMM variant where liquidity providers choose a specific price range, improving capital efficiency at the cost of more active management. Once price moves outside the selected range, the LP stops earning fees and the position becomes concentrated in one side of the pair, often the asset that has underperformed relative to the other.
TradFi equivalentA market maker quoting only inside a chosen price band rather than across the whole curve. Capital efficiency improves, and the quote disappears altogether once price leaves the band.