🚀Perks for Projects

Higher Capital Efficiency with Concentrated Liquidity

Projects can provide liquidity to their own token on TONCO using a concentrated liquidity model, which allows them to place liquidity within a defined price range. This ensures that liquidity is available exactly where it is most needed, making it possible to maintain liquidity with less capital compared to v2 AMM systems. For instance, instead of spreading liquidity across a wide, unused price spectrum, projects can define specific minimum and maximum exchange values for their token, focusing liquidity where the most trades occur.

Better Control Over Liquidity

With CLAMM, projects have greater control over their liquidity placement. They can choose the price ranges that align with their project’s goals, whether that’s ensuring a stable price for their token or creating incentives around specific price points. This flexibility allows projects to use capital more strategically and profitably, while reducing the need for large liquidity reserves. This is a huge advantage for projects looking to maintain liquidity with fewer resources, as they can adjust positions as market conditions change.

Improved Market Depth

The CLAMM model allows projects to achieve greater liquidity depth at important price points, making the token more attractive to traders by reducing slippage. This improved market depth also creates stability for token pricing, which is crucial for retaining user confidence and promoting more active trading.

Enhanced Fee Earnings

Projects can benefit from higher fee earnings due to the concentrated nature of liquidity. By placing liquidity in the most active price ranges, projects will attract more trades, generating higher fees without having to spread liquidity across less active market zones.

Liquidity Provision Strategies for Projects in CLAMM

1. Wide Range Strategy for Stability

For projects looking to maintain price stability, a wider liquidity range can be set around the current market price. This ensures that the project’s token can handle price fluctuations without slipping outside the liquidity range quickly. It offers protection from volatility while still earning fees. This strategy is perfect for tokens with relatively stable prices, ensuring constant liquidity without frequent rebalancing.

1. Narrow Range Strategy for Maximum Efficiency

Projects that expect tighter price movements can opt for a narrow liquidity range. This approach allows for the highest capital efficiency because liquidity is focused precisely where trades are most likely to occur. While the risk is higher (as liquidity may fall out of range), the reward is greater in terms of fee earnings. This strategy is ideal for projects looking to maximize returns during specific price events or short-term volatility.

1. Rebalancing Strategy for Volatile Markets

For projects dealing with more volatile tokens, a dynamic liquidity provision strategy can be employed. By regularly adjusting the liquidity range as the market moves, projects can keep their token’s liquidity active while minimizing out-of-range time. This strategy ensures that liquidity is almost always earning fees, though it requires more active management. It’s a way to stay competitive in fast-moving markets, ensuring deep liquidity where needed.

1. Custom Price Range Placement for Key Events

Projects can customize their liquidity strategy around specific events—such as new launches, listing events, major announcements or other incentives—by concentrating liquidity near key price levels. This boosts liquidity where it’s needed most and ensures price stability during critical trading periods.

CLAMM’s flexible liquidity model on TONCO can help projects better manage their liquidity, attract more trading activity, and reduce overall costs compared to traditional v2 AMMs.