FAQs

Here are some of the most frequently asked questions about Bluefin's Spot CLMM, however, if you don't find your answer in this page you can always open a support ticket on Discord and Bluefin's community managers will assist in less than 24 hours!

1. What is Concentrated Liquidity?

Concentrated Liquidity allows providers to focus their capital within specific price ranges rather than spreading it across all prices like traditional AMMs, resulting in more efficient capital use. You can easily adjust your Price Range in the Pool's UI by dragging the upper and lower ranges or selecting one of the percentages available at the bottom, which will apply evenly for above and below the current price.

Setting your Price Range in the UI

2. How do I choose a price range for providing liquidity?

Choose based on market outlook and risk tolerance—narrower ranges around current prices yield higher fees but require more adjustments; wider ranges are more passive but may earn fewer fees.

3. What happens if the price moves outside my range?

Your liquidity becomes inactive if prices move outside your range, meaning it stops earning fees until prices return within range.

4. How are fees calculated?

Fees are proportional to your share of active liquidity within a price range and accrue in real-time.

5. What’s the difference between Native USDC and Wormhole USDC?

Native USDC is issued directly on Sui for spot trading; Wormhole USDC is bridged from other networks like Ethereum and is used for derivatives trading.

6. How do I bridge assets?

Use Bluefin’s integrated Wormhole bridge by selecting source/destination networks, entering amounts, reviewing details, and confirming transactions. You can view a step-by-step walkthrough on how to bridge assets here.

7. What types of orders can I place?

Bluefin supports market orders initially; Limit orders, range orders, stop orders, and take profit orders, each suited for different strategies, are all scoped in for future updates.

8. How do Range Orders work?

Range Orders allow you to act as a liquidity provider within a specific price range while earning fees as prices move through that range.

9. Are there risks associated with providing liquidity?

Yes, impermanent loss is a key risk when providing liquidity in volatile markets. This occurs when the price of the tokens in the pool changes relative to when you first deposited them, so if one token’s price goes up or down significantly compared to the other token, the value of your assets in the pool can end up being worth less than if you had simply held the tokens outside the pool. it's called "impermanent" because it only becomes permanent if you withdraw your funds while the token prices are still imbalanced, but if prices return to the original ratio, the loss disappears.

10. How are rewards calculated?

Rewards are based on your pool share of active liquidity, as long as your liquidity remains in the selected price range you'll be accruing both fees and incentives, once price moves out of range you'll have to re-adjust to keep earning rewards.

11. How can I maximize my rewards as a liquidity provider?

Maximize rewards by providing liquidity in high-volume pools that also offer incentives, adjusting ranges based on market conditions and reinvesting earnings regularly.

12. What rewards can I earn by providing liquidity?

The main rewards a user can earn in our Pools are Sui and BLUE points. BLUE points earned on spot will be viewable in the users wallet, but these are just for tracking purposes. Users will be able to convert their BLUE points to BLUE tokens after our TGE.

13. Why don't my BLUE points in my Rewards Overview page match the ones I have in my wallet?

Even though users earn BLUE points from perps trading, spot trading and stable pools, only the points earned through spot will show up on the wallet.

14. Why is my Swap transaction failing?

The most common reasons why a swap fails are:

• Insufficient balance to pay for gas fees, although Sui transaction gas fees are one of the cheapest in Web3 so having 0,01 SUI in your wallet should be enough to cover these.

• Slippage tolerance check is failing, this happens when the price of the underlying pool moves past your Slippage Tolerance. You can go to the swap settings on the top-right corner of the modal to access the Slippage configuration and try increasing it based on your risk tolerance.