✏️ Explanation of the Range Selection Functionality in the Pool on w-dex.ai Concentrated liquidity pools (like those on w-dex.ai) allow participants to specify a price range in which their liquidity will be active. This means your funds are used for swaps only when the asset price is within your chosen range. On the pool page, you see range selection options: Narrow, Common, Wide, Full. 📚 How to Choose a Range and What It Means ⦁ Narrow Range: ⦁ Your liquidity is active only within a very tight price range. ⦁ Potential returns (from fees) are higher if the price stays within your range, as your funds are used most efficiently. ⦁ However, if the price moves outside your range, you stop earning fees and your assets become inactive until the price returns. ⦁ Requires more frequent monitoring and rebalancing to stay “in range.” ⦁ Common Range: ⦁ A wider range than Narrow, but still limited. ⦁ A balance between the risk of going out of range and earning returns. ⦁ Wide Range: ⦁ Your liquidity covers a significant portion of possible prices. ⦁ Returns are lower than with a narrow range (since your funds are spread wider), but you stay in range longer and need to rebalance less often. ⦁ This option is more “passive” and suits those who don’t want to monitor their position frequently. ⦁ Full Range: ⦁ Your funds are active across the entire price spectrum (from minimum to maximum values). ⦁ Minimum returns per unit of capital, but you are always in the market. ⦁ Suitable for maximally passive participation and minimizing the risk of being out of range, but fees are shared among all who choose such a wide range. 📚 How to Choose the Right Range Your choice depends on your strategy: ⦁ If you’re ready to actively monitor the market and react quickly, you can choose a narrow range to maximize returns. ⦁ If you prefer passive income and don’t want to intervene often, choose a wide or full range. ⦁ When choosing a range, consider the volatility of the pair: the higher the volatility, the higher the risk of the price moving outside a narrow range. 📚 What the Participant Gains ⦁ Fee Income: The narrower the range, the higher the potential return if the price stays within it. But if the price moves out, you stop earning. ⦁ Risk and Stability: Wide or full ranges offer lower returns but greater stability and less risk of being “out of the market.” ⦁ Time and Effort: Narrow ranges require more attention; wide ranges require less. "People get greedy, set a very narrow range, and then wonder why they’re not earning-price often moves out of bounds, and they have to rebalance constantly. A wide range brings less income but is more stable and requires less intervention." Conclusion: Range selection is a trade-off between potential returns and stability/passivity. If you’re a beginner or don’t want to monitor your position often, choose Wide or Full. If you’re ready to manage actively, Narrow can be more profitable but also riskier.