# 4.3 - CLAMM pools (Custom Ranges)

**CLAMM** (also known as concentrated liquidity) lets you provide liquidity inside a **chosen price range** instead of across the whole chart.

You’re basically saying: “I want my liquidity working *here*, where trading happens.”

Filter pools on the [liquidity page](https://app.usenest.xyz/liquidity) by clicking the '[Concentrated](https://app.usenest.xyz/liquidity)' tab:

<figure><img src="/files/5Hw5oaDVc11ybmHeCENb" alt=""><figcaption></figcaption></figure>

### Why CLAMM exists

Concentrating liquidity near the current price can:

* create **deeper effective liquidity** where swaps actually occur
* improve execution for traders
* let LPs earn **more NEST emissions per unit of capital** when positioned well

### The one rule that matters

* **In range = active liquidity**
* **Out of range = inactive liquidity**

If you go out of range, your liquidity stops being used for swaps, and on Nest you stop earning emissions while inactive.&#x20;

Enable **Otomato “Out of Range”** alerts so you know when your position stops earning efficiently - see [**Notifications & Alerts**](/tutorials/6.10-notifications-and-alerts.md).

{% hint style="info" %}
Enable **Otomato “Out of Range”** alerts for telegram notifications - [**Notifications & Alerts**](/tutorials/6.10-notifications-and-alerts.md).
{% endhint %}

#### Choosing a range&#x20;

* **Tighter range** → more efficiency, more management, higher emissions
* **Wider range** → less management, less efficiency, lower emissions *(compared to tighter range)*

A good beginner approach is starting wider, then tightening once you understand how the pair moves.

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#### What to watch

* **Range risk:** price can move out of your range (especially on volatile pairs)
* **Impermanent loss:** still applies
* **Repositioning cost:** adjusting ranges means more transactions (gas + time)

**Best use case:** you want higher efficiency and you’re willing to monitor/adjust regularly for higher NEST emissions to be earned.

{% hint style="info" %}
**Tutorial** on how to use concentrated pools here - [6.3 - Add Liquidity - CLAMM](/tutorials/6.3-add-liquidity-clamm.md)
{% endhint %}


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