🗿 Colossus Overview

The Colossus CLMM allows liquidity providers to provide liquidity in a specific range of prices. This means that when the current price of the pool is within the specified price range, the user will gain pool fees (as well as liquidity mining rewards) from trading volume. One of the benefits of this is that, as long as the price stays within the range, it allows the user to earn more in rewards than compared to a traditional AMM where the user must provide liquidity at all prices.

Another benefit is that traders who wish to swap their tokens have lower slippage on their trades due to the liquidity being more concentrated. In the long term, this will attract more traders to concentrated liquidity pools, thus resulting in higher earnings for liquidity providers.

Price Range

Colossus allows the users to specify a custom price range, or select from a list of preset ranges.

Deposit Amounts

Once the price range is selected, the user can select how much liquidity they would like to provide. The ratio of the two token amounts is determined by where the current price is in relation to the price range. If the price is outside of the price range, the user will have to deposit one of the tokens, while if the current price is inside the price range, the user will have to deposit both tokens.