Solana Token Pools: AMM v4, CPMM, and CLMM Compared
The Solana platform is home to various pools for tokens, including AMM v4, CPMM, and CLMM. These pools differ in their trading fees, token standards supported, and liquidity management.
AMM v4 is the original constant-product pool from Raydium, with a fixed 0.25% fee per trade. It doesn't support Token-2022 tokens but has historically been tied to the OpenBook order book. Many older tokens still trade mainly on AMM v4 pools.
CPMM, on the other hand, uses the same constant-product math as AMM v4 but without the OpenBook dependency. This makes it cheaper and simpler to create. CPMM supports Token-2022 and lets the pool creator choose a fee tier. For new launches, CPMM is often the default choice.
CLMM pools allow liquidity providers to choose specific price ranges for their capital, as seen in Uniswap v3. Inside these ranges, liquidity is deep, but if the price moves outside them, the pool becomes illiquid until more liquidity is added. CLMM is suitable for tokens with active liquidity management.