For project teams planning to issue tokens in the Solana ecosystem, choosing the correct type of liquidity pool directly relates to token issuance costs, price stability, and community participation. This article analyzes the core differences among Raydium's AMM, CPMM, and CLMM liquidity pools from a practical perspective, focusing on comparing creation thresholds, cost structures, and applicable scenarios, to help project teams make precise decisions in token economic design.

90% of new tokens in the Solana ecosystem choose Raydium as their launch trading platform, but many project teams face a dilemma when creating liquidity pools:

  • High Cost Trap: Traditional AMM pools require market ID applications and additional fees, creating financial pressure for early projects.

  • Liquidity Fluctuation: Incorrect selection of pool type may lead to severe price fluctuations, affecting token trust.

  • Inefficient Incentive: Ineffective liquidity design will make token rewards unable to accurately reach target users.

This article will reveal the underlying logic of the three types of liquidity pools, allowing project teams to achieve optimal liquidity allocation at the lowest cost.

Interpretation of Three Liquidity Concepts

I. AMM Pools (Standard Pools): A powerful cold start tool but high cost.

Core Value

  • Mandatory liquidity lock-in: Liquidity can be permanently locked by destroying LP tokens (this model is used for Meme coins launched by Pump.fun)

  • Zero slippage cold start: Prices automatically match from 0 to infinity, suitable for tokens without a clear valuation anchor in the early stages.

  • Universal Support: Wallets like OKX and Phantom, as well as Jup, support AMM.

  • Hidden Cost Traps

  • Need to apply for OpenBook market ID, creation cost is about 0.55 SOL~3 SOL (ID creation tool: CiaoTool)

  • Capital efficiency is only 10%-15%, actual liquidity depth is far below the displayed TVL value.

Applicable Scenarios

  • Meme coins that need to go online quickly and do not require price control.

  • Initial liquidity building for community-driven tokens.

II. CPMM Pools (Constant Product Pools): Advanced compliance choice.

Function Upgrades

  • Token 2022 Standard Support: Built-in token metadata functions, can set compliance mechanisms such as dividends and taxes.

  • Dynamic Fee Layering: Choose a gradient fee rate of 0.01%-1% based on token attributes (stablecoins 0.01%, high volatility tokens 1%).

  • Cost Advantages

  • No need to destroy LP tokens, creation cost reduced to 0.4 SOL.

  • Achieve dual-token incentives through Fusion Pools, reducing project team's reward expenditures.

Applicable Scenarios

  • Practical tokens that need to set trading tax or dividend mechanisms (e.g., GameFi projects).

  • Compliance tokens hoping to introduce institutional market makers.

III. CLMM Pools (Concentrated Liquidity Pools): Preferred by stablecoin project teams.

Revolutionary Innovation

  • Permissionless Creation Mechanism: Any user/project team can directly create pools with zero market ID application cost.

  • Precise Price Anchoring:

  • Can set a narrow fluctuation range of ±1% (e.g., stablecoin projects lock at 0.99–1.01 USD).

  • Compared to AMM pools, the same amount of funds can achieve 400 times liquidity depth.

  • Compound Incentive System

  • Supports dual-token rewards (must include one of the tokens in the pool).

  • Liquidity positions NFT-ized to prevent disorderly exits by community users.

Applicable Scenarios

  • Stablecoins, anchored assets (such as LST), and other projects that require strict control.

  • Medium to long-term projects hoping to establish a price moat through liquidity mining.

Core Decision Dimension Comparison

一篇文章教你正确区分Raydium AMM、CPMM和CLMM流动性的区别

Liquidity is the moat.

In the liquidity war of the Solana ecosystem, CLMM pools have become a strategic tool for project teams — not only can they reduce market-making costs by 90%, but more importantly, they build a loyal community liquidity through NFT-ized position management. It is recommended that project teams pay close attention to Raydium's upcoming LP token locking feature, which will become a new defense against malicious short-selling.

Remember: Liquidity design is not a technical choice, but an extension of token economics. Lock price ranges with CLMM pools, achieve compliance scalability with CPMM pools, and complete cold starts with AMM pools — the combination of these three is the survival rule for contemporary project teams.