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Documentation Index

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DLMM Liquidity Mining is the token reward mechanism for LPs who provide useful, active liquidity in a DLMM pool. In the lb_clmm program, this feature is represented by the LiquidityMining function type and liquidity mining support checks. Liquidity mining is a pool function mode. A reward-enabled DLMM pool supports liquidity mining and does not support limit-order placement at the same time. Each pool can track up to 2 reward tokens. Rewards are designed to flow to liquidity where trading is actually happening, not liquidity that sits far away from the market price. Rewards accrue through your DLMM Dynamic Position when your liquidity is in the active bin or, during swap processing, in eligible bins crossed by swaps.

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Why Liquidity Mining Matters

Incentivize Useful Liquidity

Rewards flow to bins that support active trading, helping pools deepen liquidity where traders need it most.

Boost LP Returns

LPs can earn liquidity mining rewards in addition to trading fees when their position is active and eligible.

Support Launch Growth

Token teams can use rewards to attract liquidity during important launch or growth periods.

Align With DLMM Design

Rewards follow DLMM’s bin model, so incentive distribution stays tied to the same liquidity that powers swaps.

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Who Earns Rewards

Rewards are distributed to positions with liquidity in the active bin during normal reward updates. If a swap moves the active price across multiple bins, the v2 swap flow can also distribute elapsed rewards across bins with liquidity that were crossed during that swap, up to the program’s 15 bin reward-split limit. Your reward share depends on your share of liquidity in the eligible bin or bins. 
Your reward share = your liquidity in eligible bins / total liquidity in eligible bins
If your position is out of range, it does not earn liquidity mining rewards because it is not supporting active trading. If a bin has no liquidity, no LP receives rewards from that bin.
In DLMM, the same idea applies to fees and rewards: active liquidity matters. A position that is not in range does not earn trading fees or liquidity mining rewards until price returns or the LP rebalances.

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How Rewards Are Distributed

Liquidity mining rewards are emitted at a fixed rate over the reward period. For example, a pool could distribute 50,000 USDC over four weeks. That budget is streamed over time and allocated to eligible bins. When the active bin stays in one place, rewards go to liquidity in that active bin. When a v2 swap crosses multiple bins with liquidity, rewards accumulated since the last update can be split across crossed bins and then distributed proportionally to LPs in each bin. 
Reward budget over time
  -> active bin or crossed bins
  -> LPs in those bins, based on liquidity share

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Example

Suppose a pool distributes 50,000 USDC over four weeks, equal to about 1,785.71 USDC per day.
MomentWhat HappensWho Earns
Position A deposits in bin 0Bin 0 is the active binPosition A earns rewards from bin 0
Position B joins bin 0Bin 0 is still activePositions A and B share rewards based on liquidity share
Position C adds liquidity in bin 1Bin 1 is not active yetPosition C does not earn until bin 1 becomes active or is crossed
A swap moves price from bin 0 to bin 1Both bins are crossedRewards are allocated across bin 0 and bin 1, then shared by LPs in each bin
This example shows the core principle: liquidity mining rewards follow active market participation.

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Claiming Rewards

DLMM liquidity mining rewards do not auto-compound. They accrue to eligible positions and must be claimed manually.

Claimable

Rewards accumulate for eligible positions and can be claimed when available.

Not Auto-Compounded

Rewards are not automatically added back into your DLMM liquidity position.

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What Happens When There Is No Active Liquidity

If there is no liquidity in the active bin, rewards are not distributed to LPs for that period. The program tracks cumulative_seconds_with_empty_liquidity_reward for reward time that passed while the active bin had no liquidity. Operators can withdraw ineligible rewards through the program flow designed for that case. This is important for LPs and token teams. If incentives are meant to attract market depth, the best outcome is not just more liquidity overall, but liquidity placed close enough to support trading.

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Product Takeaways

Liquidity mining rewards can improve returns, but only when your liquidity is active. Choose ranges that match your market view and rebalance when price moves away.
Liquidity mining can help bootstrap liquidity and keep LPs engaged, but reward design should encourage depth around the prices where trading is expected.
Liquidity mining can help attract deeper active liquidity, which may improve trading depth and routing quality for the pool.