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  • ☠️Introduction
    • What is Clipper?
    • How Clipper Makes Money for LPs
    • How LPs Earn from Arbitrage
    • Clipper's Benchmark: No Impermanent Loss
      • Clipper vs. CPMMs vs. HODLing
      • Appendix: Math
    • Why Clipper Has Better Trading Prices
    • DAO Protocol Fees
    • DAO Governance
  • ⚔️How to Use Clipper
    • Liquidity Pools
      • Depositing & Withdrawing
      • Farming Pools
    • Trading
    • Community Adventures
    • FAQs
  • 🪙Governance Token
    • Community Governance
    • ⛵SAIL Primer
      • Clipper Fundamentals
      • DEX Market Structure
      • SAIL Supply & Circulation
      • SAIL Farming
      • veSAIL
      • Token Listings
  • 🏴‍☠️Disclaimers & Technical
    • Audits
    • Smart Contracts
      • Subgraph
        • Entities
        • Queries
    • Integrating with Clipper RFQ
      • Introduction
      • Guides
        • How to use clipper RFQ API?
        • Estimate Clipper Prices
        • Interacting with the Clipper Exchange contracts
        • Integration Examples
          • Swap Native token → Shorttail
          • Swap Shorttail → Native token
          • Swap Shorttail → Shorttail
          • Complete Swap Flow
      • API Reference
        • API v2
          • Overview
          • Pool v2
          • Quote v2
        • API v1
          • Overview
          • Pool
          • Quote
          • Sign
      • Troubleshooting & FAQs
    • Terms of Service
    • Privacy Policy
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  1. Introduction

What is Clipper?

Clipper is the blue-chip DEX with no impermanent loss.

NextHow Clipper Makes Money for LPs

Last updated 1 year ago

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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 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 with no impermanent loss and traders can expect no whales or bots front-running their trades. Clipper was initially developed by and licensed to .

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.

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superior yields
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novel architecture