Create a CLMM Pool

Any project team or user can establish a Concentrated Liquidity Market Maker (CLMM) pool on Sailor. CLMM pools offer advanced market-making capabilities, providing enhanced capital efficiency for liquidity providers and reduced slippage for swaps.

Important Considerations

Before creating a CLMM pool and farm, keep these points in mind:

Token Selection

• Any ERC-20 token can be used to create a CLMM pool.

• Each pool consists of two tokens, typically a base and quote token. (e.g. SEI is the base token, USDC is the quote token in a SEI/USDC pool)

• To prevent deplicate pools, only one token pair per fee-tier is allowed on Sailor.

Fee Tiers

Choose from four options:

• 0.01%: Ideal for very stable assets

• 0.05%: Best for high-volume pairs

• 0.25%: Suitable for most pairs

• 1.00%: Designed for exotic pairs

Token Price

• Starting price is determined by the number of Quote Tokens required to purchase 1 Base Token.

• Initial Price Range will be the interval in which the pool creator's liquidity is initially provided upon pool creation. Initial liquidity will be concentrated within this range.

Farm Creation

• Only the pool creator can establish a farm for the given CLMM pool.

• Two token rewards can be chosen; one must relate to the token pair, while the other can be any ERC-20 token.

Rewards and APR

APR is calculated based on rewards, token price, and pool liquidity. The APR calculation for CLMM pools is more complex than for Constant Product AMMs, you can understand the full APR calculations in "Estimated APR Calculations"

Key Considerations for Reward Calculations

• Liquidity around the mid-price

• Price of reward token

• APR calculation methods

Rewards allocated to farms are final and cannot be withdrawn post-creation. Adjustments can only be made 72 hours before the current farming period ends.