Armada CLMM 101: Token Liquidity Management on Solana

After new tokens are launched successfully, the health of and sustained participation in a project’s token ecosystem is largely dependent upon liquidity. Robust liquidity allows for the development of a vibrant token ecosystem where users can participate confidently and efficiently. 

The most comprehensive solution available for Solana-based token liquidity today is the newly launched Armada Concentrated Liquidity Market Maker Vaults (CLMMs), which streamline the process of liquidity provisioning for any SPL token. 

Armada Concentrated Liquidity Market Maker (CLMMs) Vault Overview

Built off of the foundations of open-source configurations from Orca, Armada’s CLMM vaults provide projects with a flexible solution for robust, strategy-driven, token market liquidity 

CLMMs are liquidity pools with vaults built on top of them. Each vault is made up of a different strategy as determined by the vault mandate. Each pool may have an unlimited amount of vaults built into it. Within each vault, up to 5 individual strategies (or “ranges”) may be implemented.

Through the Armada interface, ecosystem participants can easily provide token liquidity to various vaults with market makers that manage the position within the explicit mandates of the strategy selected. LPs can deposit their assets into any one of the vaults at any time, and there is no lockup requirement once a deposit is made. 

Example:

The SOL/USDC Liquidity Pool may have 3 different Armada vaults built on top of it:

• A balanced vault that runs a strategy to minimize impermanent loss and maximize fee capture

• A bullish vault that is designed for LPs to scale out of an existing position

• An accumulation vault designed for LPs to gradually dollar-cost average (DCA ) into a position

Armada CLMMs are now available at https://app.armadafi.so. Join the Armada Discord to connect directly with core contributors and to receive ongoing updates. #JoinTheFleet