# What is Clipper?

### The Blue-Chip DEX

Clipper is a DEX designed for blue-chip tokens (e.g., ETH, WBTC, USD stablecoins, etc.) and no impermanent loss. Blue-chip tokens comprise 70% of all on-chain trading volume.

Clipper's [novel architecture](https://docs.clipper.exchange/how-clipper-makes-money-for-lps#fmm-architecture) makes money for LPs using the same arbitrage strategy used by professional market makers, but implemented in a permissionless and non-custodial manner. In contrast to most DEXs, Clipper's LP yields are not generated from fees.

Clipper computes prices off-chain using a sophisticated formula that incorporates low-latency price feeds from centralized exchanges along with a snapshot of on-chain state. It then uses on-chain proofs to validate prices and preserve permissionlessness. This allows Clipper to make money from arbitrage, instead of paying a tax to arbitrageurs, while keeping gas fees low for traders. On Clipper, liquidity providers take home [superior yields](https://docs.clipper.exchange/introduction/how-lps-earn-from-arbitrage) with **no impermanent loss** and traders can expect no whales or bots front-running their trades. Clipper was initially developed by [Shipyard Software](https://www.shipyardsoftware.org) and licensed to [AdmiralDAO](https://www.admiraldao.xyz/).

Previously, Clipper focused solely on smaller trades. Recent architectural improvements now allow it to provide best prices for all trades, with sufficient TVL.

**Clipper is currently available on the following chains:**

* Ethereum
* Polygon
* Optimism
* Arbitrum
* Mantle Network
* Base

> **⛵️ Fun Fact:** Clipper is named for the mid-19th-century merchant vessels that revolutionized global trade. Clipper ships were designed for speed, partially by trading off cargo capacity, and made their owners millions of dollars.