Range Management Strategy

Range Management Strategy refers to the systematic approach of defining and adjusting the price boundaries for concentrated liquidity positions. A well-designed strategy considers historical volatility, support and resistance levels, and the provider's risk appetite to set the most effective range.

If the price is expected to be stable, a narrow range maximizes fee income; if the price is volatile, a wider range provides better protection against being pushed out of the market. Strategy also includes automated triggers to shift or expand the range when market conditions change significantly.

This is a proactive approach that moves beyond static liquidity provision to active portfolio management. By aligning the range with market trends, providers can capture more fees while minimizing the time their capital spends in an inactive state.

It is a key element of competitive performance in modern decentralized exchanges.