Comparison with Basic position

A basic position provides liquidity in all price range, which means that a user can buy or sell a coin in any price. However, the trading amount at a given price by the pool becomes not much large since the liquidity of the pool are spread over all the price.

Basic position

Once the liquidity is concentrated in a specific range of the price, enough liquidity can be provided for trading market in the price range even with the small capital. The following example is a ranged liquidity position with the price range from 0.8 to 1.2. In this regards, the ranged position could be more useful to the pair with stable price, e.g., bCRE/CRE, ETH/ETH, and USDC/USDC pairs.

Ranged position