Single-sided LP β a limit order that pays you
Why do we deposit only USDC?
In our strategies the LPLPLiquidity Provider β deposits tokens into a pool and earns a share of trading fees.Read the lesson β position is single-sided β we deposit only USDC, not a SOLSOLSolana's native token. Used to pay gas and as collateral.Read the lesson β+USDCUSDCA USD stablecoin issued by Circle. Regulated, audited monthly. Our primary stablecoin and loan asset in the Kamino/Aave strategies.Read the lesson β pair. That changes the entire logic of the position.
Two-sided vs single-sided LP
Two-sided LP: You deposit SOLSOLSolana's native token. Used to pay gas and as collateral.Read the lesson β + USDCUSDCA USD stablecoin issued by Circle. Regulated, audited monthly. Our primary stablecoin and loan asset in the Kamino/Aave strategies.Read the lesson β. If SOLSOLSolana's native token. Used to pay gas and as collateral.Read the lesson β falls, you take a loss on both legs. If SOLSOLSolana's native token. Used to pay gas and as collateral.Read the lesson β rises, part of your SOLSOLSolana's native token. Used to pay gas and as collateral.Read the lesson β is automatically sold off (you give up the upside).
Single-sided USDC LP: You deposit ONLY USDCUSDCA USD stablecoin issued by Circle. Regulated, audited monthly. Our primary stablecoin and loan asset in the Kamino/Aave strategies.Read the lesson β, in a range below the current price. It's a way of saying: "I'll buy SOLSOLSolana's native token. Used to pay gas and as collateral.Read the lesson β if the price falls. And while I wait, I collect fees."
How does a single-sided USDC LP work?
Position layout
Price ($)
^
|
88 βββ Current SOL price ββββββ Upper bound
| ββββββββββββββββββββββββ
| ββββββββββββββββββββββββ β Your USDC "works" here
| ββββββββββββββββββββββββ and generates fees
| ββββββββββββββββββββββββ
64 βββ Lower bound βββββββββββββββ
|
| (nothing below this)
The point: Your USDCUSDCA USD stablecoin issued by Circle. Regulated, audited monthly. Our primary stablecoin and loan asset in the Kamino/Aave strategies.Read the lesson β sits in the $64β$88 range. While SOLSOLSolana's native token. Used to pay gas and as collateral.Read the lesson β trades above $88 you hold 100% USDCUSDCA USD stablecoin issued by Circle. Regulated, audited monthly. Our primary stablecoin and loan asset in the Kamino/Aave strategies.Read the lesson β and earn fees from every swap that touches this range.
What happens as the price moves?
| SOL price | Position state | Fees | IL |
|---|---|---|---|
| $100 (above the range) | 100% USDCUSDCA USD stablecoin issued by Circle. Regulated, audited monthly. Our primary stablecoin and loan asset in the Kamino/Aave strategies.Read the lesson β, inactive | None | None |
| $88 (upper bound) | 100% USDCUSDCA USD stablecoin issued by Circle. Regulated, audited monthly. Our primary stablecoin and loan asset in the Kamino/Aave strategies.Read the lesson β, starts working | Starts accruing | None |
| $76 (middle) | ~50% USDCUSDCA USD stablecoin issued by Circle. Regulated, audited monthly. Our primary stablecoin and loan asset in the Kamino/Aave strategies.Read the lesson β + ~50% SOLSOLSolana's native token. Used to pay gas and as collateral.Read the lesson β | Accruing | Yes |
| $64 (lower bound) | 100% SOLSOLSolana's native token. Used to pay gas and as collateral.Read the lesson β | Stops | Maximum |
| $50 (below the range) | 100% SOLSOLSolana's native token. Used to pay gas and as collateral.Read the lesson β, inactive | None | Growing |
Single-sided LP = a limit order that pays you
Getting paid to wait
A plain limit order: "I want to buy SOLSOLSolana's native token. Used to pay gas and as collateral.Read the lesson β at $64." Then you wait. No reward for waiting.
A single-sided USDC LP ($64β$88): "I want to buy SOLSOLSolana's native token. Used to pay gas and as collateral.Read the lesson β somewhere between $64 and $88." And you collect fees while you wait. If the price falls, you bought SOLSOLSolana's native token. Used to pay gas and as collateral.Read the lesson β. If it doesn't, you earned fees.
It's like getting paid while you stand in the queue.
Limit order vs single-sided LP
| Limit order (exchange) | Single-sided LP | |
|---|---|---|
| Income while waiting | $0 | Fees (e.g. ~68% APRAPRAnnual Percentage Rate β the annual interest rate WITHOUT compounding. 10% APR = +10% per year.Read the lesson β) |
| Purchase price | One specific price | A range (an average) |
| Capital "locked up" | Yes | Yes, but it earns |
| Smart contract risk | None (on an exchange) | Yes |
Range depth: β20% vs β28%
Strategy A: β20%
Current price: $88
Range: $70.40 β $88.00
| Advantage | Trade-off |
|---|---|
| Narrower = bigger fees | Falls out of range sooner |
| Needs less capital | Needs repositioning more often |
Strategy B: β28%
Current price: $88
Range: $63.36 β $88.00
| Advantage | Trade-off |
|---|---|
| Wider = repositioning less often | Smaller fees |
| Better for long-term positions | More IL if the price crosses the whole range |
Worked example β Strategy B
Starting parameters
Scenario 1: SOL stays between $80β$88 (one month)
Fees: $5.95 Γ 30 = $178.50
IL: -$30 (small, the price moved down slightly)
Result: +$148.50
APR: +55.7%
Good outcome β fees comfortably exceed IL.
Scenario 2: SOL falls to $70 (one month)
Fees: $5.95 Γ 30 = $178.50
IL: -$254 (significant)
Position: ~29% USDC + ~71% SOL
Result: -$75.50
APR: -28.3%
Roughly a wash β fees covered most of the IL. At $70 you're close to the lower bound, so the position is already mostly SOLSOLSolana's native token. Used to pay gas and as collateral.Read the lesson β. If the price recovers toward the top of the range, the IL disappears and the collected fees stay.
Scenario 3: SOL falls to $55 (one month)
Fees: $5.95 Γ 20 = $119 (only while it was in range)
IL: -$450 (position is 100% SOL and the price keeps falling)
Result: -$331
Negative. This is exactly where options insurance (a put spread) does the work.
- IL grows as the price falls deeper into the range β you choose the range depth deliberately (β20% or β28%), not blindly
- Price falls below the lower bound β the position becomes 100% SOL β a put spread covers the downside (module 5)
- Smart contract risk β we only supply liquidity to the audited OrcaOrcaA Solana DEX with concentrated liquidity (Whirlpool). The basis of our LP strategy on the Solana network.Read the lesson β WhirlpoolWhirlpoolOrca's concentrated-liquidity engine. Works similarly to Uniswap V3, but on the Solana network.Read the lesson β (SolanaSolanaA fast blockchain (under 1s, gas under $0.01). Home to the Kamino, Orca and Meteora ecosystem.Read the lesson β)
Every risk here has a lever. You're not meant to fear it β you're meant to learn how to pick a range and cover the downside.
Why not the SOL side?
You could build a single-sided SOLSOLSolana's native token. Used to pay gas and as collateral.Read the lesson β LPLPLiquidity Provider β deposits tokens into a pool and earns a share of trading fees.Read the lesson β (a range above the current price). But we don't:
| Single-sided USDC (below) | Single-sided SOL (above) |
|---|---|
| We buy SOLSOLSolana's native token. Used to pay gas and as collateral.Read the lesson β cheaper (useful) | We sell SOLSOLSolana's native token. Used to pay gas and as collateral.Read the lesson β higher |
| SOLSOLSolana's native token. Used to pay gas and as collateral.Read the lesson β stays as collateral | SOLSOLSolana's native token. Used to pay gas and as collateral.Read the lesson β is sold off (collateral gone) |
| Fits our strategy | Works against the strategy |
Single-sided USDC = the backbone of the strategy
Single-sided USDCUSDCA USD stablecoin issued by Circle. Regulated, audited monthly. Our primary stablecoin and loan asset in the Kamino/Aave strategies.Read the lesson β LPLPLiquidity Provider β deposits tokens into a pool and earns a share of trading fees.Read the lesson β fits our strategies for four reasons:
- It adds no extra SOL exposure β we already hold SOLSOLSolana's native token. Used to pay gas and as collateral.Read the lesson β as collateral
- If SOL falls β the LPLPLiquidity Provider β deposits tokens into a pool and earns a share of trading fees.Read the lesson β "buys" SOLSOLSolana's native token. Used to pay gas and as collateral.Read the lesson β with a fee discount
- Fees offset the borrowing cost β $5.95/day in fees vs $0.77/day in interest
- It combines with options β put protection covers the LPLPLiquidity Provider β deposits tokens into a pool and earns a share of trading fees.Read the lesson β's IL
When should you reposition the range?
| Situation | What to do |
|---|---|
| Price is 10% above the upper bound | Consider moving the range up |
| Price approaches the lower bound (within 5%) | Get ready: close or widen? |
| Price is below the lower bound | Wait for a recovery, or close |
| Fees dropped below breakeven | Narrow the range, or close |
| 30+ days with no change | Review whether the range is still optimal |
Once you've read this table, you'll recognise for yourself when a position is worth moving and when it's better left alone.
Glossary
| Term | What it means |
|---|---|
| Single-sided LP | An LPLPLiquidity Provider β deposits tokens into a pool and earns a share of trading fees.Read the lesson β position with only one token (USDCUSDCA USD stablecoin issued by Circle. Regulated, audited monthly. Our primary stablecoin and loan asset in the Kamino/Aave strategies.Read the lesson β or SOLSOLSolana's native token. Used to pay gas and as collateral.Read the lesson β) |
| Limit order that pays | An LPLPLiquidity Provider β deposits tokens into a pool and earns a share of trading fees.Read the lesson β acting as a limit order that also earns fees |
| Range | The price boundaries within which your money works |
| Upper/lower bound | The top and bottom edge of the range |
| Out of range | Price is outside the boundaries β no more fees |
Next up: the final lesson of the module β how to collect and reinvest LPLPLiquidity Provider β deposits tokens into a pool and earns a share of trading fees.Read the lesson β income.
Single-sided USDC LP is the backbone of our strategies. Plan a hypothetical position on paper, then try it in the simulator. Takes about 15 minutes.
Do NOT open a real position yet β plan first, then the simulator at /sandbox/3-orca-lp. For real money you are still missing the options insurance layer (module 5).
This is learning, not investing β use only small amounts you treat as tuition.
You just built a single-sided LP plan with an action for every scenario and you know what covers the downside β most people never plan that far.