Product introduction
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Return and risk of Alpha Farm
In Bybit Alpha Farm (CLMM LP), you earn returns by providing liquidity.
In decentralized markets, there are no banks or market makers holding funds. To support asset swaps, liquidity pools are created to hold pairs of tokens, such as SOL and USDC.
What you do: Deposit 2 tokens into the pool, such as 50% SOL and 50% USDC
What you become: A liquidity provider (LP), supplying funds for others to trade
How you earn: Each trade in the pool pays a fee, which is shared with LPs based on their contribution
Alpha Farm uses Concentrated Liquidity Market Marker (CLMM) technology. This lets you place liquidity within specific price ranges. As long as trades happen within that range, you earn a share of the trading fees.
Alpha Farm (CLMM LP) can offer attractive returns, but it carries risk.
1. Out-of-range risk
Your liquidity only works within the price range you set. If the market price moves outside this range, your position becomes inactive and stops earning trading fees until the price returns.
2. Impermanent loss
Due to price fluctuations, the final value of your assets as a liquidity provider (LP) may be lower than if you had simply held the tokens. When the price ratio between the two tokens changes significantly, the pool automatically buys and sells assets to maintain balance. This rebalancing may result in lower overall returns compared to holding the tokens without providing liquidity.
3. Position bias (asset conversion risk)
Large price movements can significantly change your asset mix: - If price falls: Your position may end up holding more of the falling token (e.g. SOL), increasing downside risk. - If price rises: Your position may convert into stablecoins (e.g. USDC), limiting further upside.
4. Slippage risk
Due to rapid market movements and automatic token conversion, the final amount you receive when depositing or withdrawing may differ slightly from what you see. In periods of extreme volatility, transactions may fail while network fees are still charged.
Pool layering
Stable type
Low price volatility with fewer range breaks. Positions are less likely to move out of range, resulting in lower position drift and impermanent loss, and supporting more stable long-term returns.
USDC-USDT
Medium volatility
Moderate price volatility with occasional range breaks. Returns may be higher, but positions can shift more frequently, increasing impermanent loss and requiring active range management.
TSLAx-USDC
NVDAx-USDC
XAUt0-USDT
High volatility
High price volatility with frequent range breaks. Positions may quickly convert between assets, leading to higher impermanent loss and capital swings, with potential for higher short-term returns.
WhiteWhale-USDC
PYBOBO-USDCHow to use Alpha Farm
Staking
Choose a liquidity pool, then invest from your UTA using USDT, USDC, SOL or BBSOL
Draw
Track real-time rewards and receive assets in your UTA in USDT, USDC, SOL or BBSOL
Alpha insights
How to Get Started with Bybit Alpha
FAQ — Bybit Alpha
How to Get Started with CLMM LP on Alpha
FAQ — CLMM LP on Bybit Alpha
Alpha campaigns
Trade & earn from a 150M PYBOBO prize pool
Trade & earn from a 10M FIGHT prize pool
Trade & earn from a 3M SKR prize pool
Trade & earn from a 100K USDT prize pool
Stock Tokens
XAUT × Puzzle Hunt