For Liquidity Providers

Overview

This section explains how liquidity providers (LPs) participate in Stryke’s Concentrated Liquidity Automated Market Maker (CLAMM). It outlines how liquidity interacts with options, how earnings are calculated, and how LPs can manage and monitor their positions.

How CLAMM Uses Uniswap V3

Uniswap V3 Overview Uniswap V3 allows LPs to allocate liquidity within specific price ranges instead of spreading it across the full price curve. This approach increases capital efficiency and enables LPs to focus liquidity where most trading occurs.

Integration in CLAMM CLAMM builds on this concept by linking liquidity to options markets. When liquidity within a price range is used for an options contract, it temporarily leaves the pool until the contract expires or is exercised. During this period, LPs earn both swap fees and option premiums.

Utilised Ticks and Options

Liquidity tied to options is isolated from standard pool liquidity while the contract is active. This separation allows for transparent accounting and clear tracking of earnings from both liquidity provision and options activity. Once the option expires or is exercised, the liquidity automatically returns to the pool.

Supported Markets and Chains

CLAMM operates across multiple chains, providing access to a wide range of markets.

Chain	Available Markets
Arbitrum	WBTC/USD, WETH/USD

Earnings and Incentives

CLAMM’s distribution system is designed to reward consistent and efficient liquidity provision.

• Premium Distribution: Premiums are calculated offchain and claimable via a Merkle distributor within the app.

• Eligibility: Rewards are based on liquidity amount and time active in the pool. If an LP withdraws liquidity while it is in use, the position is marked as forfeited until redeposited.

• Efficiency Rewards: LPs who maintain stable liquidity aligned with market demand earn higher rewards.

• Swap Fees: Distributed in the same way as other DEXs, but also influenced by deposit amount and duration.

• Earnings Cycle: All earnings update every 24 hours at 08:00 UTC (+2 hours buffer). LPs can claim rewards after each update window.

This mechanism ensures a fair distribution model that favours long term, consistent participation.

LP Dashboard

The LP dashboard provides full visibility and control over liquidity positions:

• Detailed position level data across markets and expiries.

• Tools to manage deposits, withdrawals, and claims.

• Performance charts to assess capital utilisation and efficiency.

This enables LPs to monitor performance in real time and adjust their strategy when needed.

Hooks

Hooks let LPs automate specific actions, such as:

• Avoid selling options during low volatility periods.

• Restrict option sales to selected timeframes.

• Limit sales below a defined premium threshold.

• Token gate liquidity access to specific holders.

LPs can build or customise hooks using Stryke’s API documentation or by contacting the team through official channels on Discord or Twitter.

Security

All liquidity operations (including deposits, withdrawals, and claims) are executed through secure, audited transaction flows. This ensures reliability and protection of user funds at every stage.

Additional Information

Future documentation will include reference examples, historical LP performance data, and comparisons between different markets to help users refine their liquidity strategies. For practical instructions on adding liquidity, managing positions, and claiming rewards, see the UI Walkthrough section for a complete walkthrough of the CLAMM interface.