Provide concentrated liquidity on SOL-USDC

Who it's for

You hold both SOL and USDC, check positions regularly, and want trading fees that can beat lending yields. You understand impermanent loss.

Where the yield comes from

Every swap in the pool pays a fee (for example 0.04% to 0.25% depending on the pool). Your share of those fees depends on how much of the active liquidity is yours, which is why narrower ranges earn more while price stays inside them.

Steps

1. Run the numbers in the impermanent loss calculator for the range you're considering.
2. Pick a venue and pool. Orca Whirlpools and Raydium CLMM use price ranges; Meteora DLMM uses bins with dynamic fees. Compare fee APR (7-day fees ÷ deposits).
3. Choose a range. Beginners: ±20 to 30% around the current price. Narrower ranges earn more but need frequent rebalancing.
4. Deposit both tokens. The app tells you the ratio.
5. Monitor. If price leaves your range, you stop earning and hold one token. Decide whether to wait or rebalance.

Prefer hands-off?

Kamino Liquidity vaults manage the range for you and auto-compound fees, for a fee.

What to expect

Fee APRs on SOL-USDC vary widely with volume and range width, from single digits to well above 20% in volatile weeks. Your real return is fees minus impermanent loss, compared with simply holding.

Risks

• Impermanent loss when SOL moves sharply either way.
• Out of range: zero fees, and you're fully in the token that moved against you.
• Rebalancing costs: each rebalance pays swap fees and can lock in losses.
• Smart contract risk.
• Orca's merger with Loopscale into Formation may change products.

Exit plan

Close the position to withdraw both tokens and collected fees. If you're out of range, consider whether to swap back to your original split.