Liquidity Provision

Liquidity Program Details

Clipper multi-asset pools are maintained at the ideal size for trades <$10K. Since liquidity is finite, Clipper prioritizes LPs who are users and community members with a few limitations:

→ Participants must whitelist in advance.

Only Clipper community members that whitelist their wallet address can deposit liquidity. Whitelist registration is open to anyone.

→ Deposits are limited in size.

By limiting the size of each deposit, we can ensure the pool doesn’t exceed the ideal size from only a few big LPs. Whitelisted LPs can see their deposit cap on Clipper by connecting their wallet.

→ Deposits are locked for a short period.

LP deposits are locked up for a mandatory period to ensure a stable and cost-effective trading experience on Clipper. LPs can view their lockup period by connecting their wallet on Clipper and viewing the pool.
Additionally, the trading fees you collect as an LP will be added to the overall value of your deposit and can be withdrawn at the same time as your initial stake.

Collecting Riches

Clipper’s novel design expresses and awards yield differently than other DEXs.

Fees tied to deposit value.

The trading fees you collect as an LP will be added to the overall value of your deposit and can be withdrawn at the same time as your initial stake.

→ Collect fees from every transaction.

Since Clipper uses one multi-asset pool per network, LPs collect fees from every transaction made on the network, regardless of the asset you originally deposited.

Diversified asset exposure.

Unlike some other liquidity programs, the real-time value of your deposit can fluctuate based on the prices of the entire liquidity pool rather than just the original asset you deposited. Clipper pools can be thought of as a blend between a mutual fund–you get exposure to a group of assets with varying risk levels. This minimizes your risk exposure.

Liquidity pool tokens

Each time a liquidity provider contributes to a pool, they receive a certain amount of fungible pool tokens (“CLPRDRPL”). These ERC-20 tokens represent an LP’s fractional ownership of the underlying pool and enable Clipper’s protocols to normalize each LP’s deposits and withdrawal amounts in a way that ensures transparency and fairness for everyone. The utility of these tokens is only to measure the value of a deposit and are exchanged for tokens from the pool at the time of withdrawal.
To withdraw their liquidity deposits and accrued rewards, Clipper liquidity providers burn their CLPRDRPL pool tokens in exchange for crypto assets in the pool.

→ Accounting for impermanent loss

You can view Clipper LPs’ historical earnings using Clipper’s Data Dashboard, which displays specific net yields in real time and over the past 30 days. This “net yield” figure factors in account losses to give you the most accurate info possible – unlike most other DEXs, which present approximated figures that don’t account for impermanent loss and other on-chain realities. Learn about how Clipper calculates accurate LP yields here.