SNAP Basic Training 007
Narrow vs Wide – Choosing Your Range Like a Commander
Liquidity on SNAP isn’t about being everywhere. It’s about being where trades actually happen.
When you deploy liquidity, you’re not just providing tokens. You’re choosing a range. That range determines how often you earn fees, how exposed you are to price movement, and how actively you’ll need to manage the position.
This training breaks down narrow vs wide ranges in practical terms, so you can choose like a commander, not a passenger.
What a Liquidity Range Really Is
A liquidity range defines where your capital is active.
- Inside the range: your position earns fees
- Outside the range: your position is idle
If price moves beyond your upper or lower bound, your liquidity stops participating until price re-enters the zone.
Think of it like placing a patrol.
A tight patrol controls a small area with force. A wide patrol covers more ground, but with less impact.
Narrow Ranges – High Focus, High Maintenance
A narrow range concentrates your liquidity close to the current price.
That concentration increases your share of fees while price stays inside the zone.
Why commanders choose narrow ranges
- Higher fee efficiency per unit of liquidity
- Strong performance in sideways or predictable markets
- Ideal for active operators watching price closely
The trade-off
- Price exits the range faster
- Requires rebalancing and redeployment
- Idle liquidity earns nothing
Narrow ranges reward attention. If you step away, the market won’t wait for you.
Wide Ranges – Coverage and Endurance
A wide range spreads liquidity across a larger price area.
You earn fees over more price movement, but each unit of liquidity is less concentrated.
Why commanders choose wide ranges
- Less frequent rebalancing
- Better tolerance for volatility
- Suited to longer-term or passive strategies
The trade-off
- Lower fee efficiency
- Capital is spread thinner
- Less responsive to short-term activity
Wide ranges are about endurance. You sacrifice intensity for resilience.
Matching Range to Market Conditions
Range selection is a response to conditions, not a fixed rule.
Consider a narrower range when:
- Price is stable or range-bound
- Trading volume is concentrated
- You plan to monitor and adjust
Consider a wider range when:
- Volatility is high
- Direction is uncertain
- You want reduced management overhead
Commanders adapt their formations. Liquidity should too.
Risk Is Not Just Price Movement
Range choice also affects how risk shows up.
A narrow range doesn’t increase impermanent loss on its own, but it increases the chance of inactivity. A wide range lowers that risk, but dilutes earnings.
Neither option is safer by default. They carry different operational risks.
Understanding that difference is the edge.
One Last Tactical Reminder
There is no “best” range.
There is only:
- Your time horizon
- Your tolerance for management
- Your read on market behaviour
SNAP gives you the controls. The outcome depends on how deliberately you use them.
In the next training, we’ll zoom out and look at how fees, emissions, and positioning work together once your liquidity is deployed.
Command decisions compound. Choose your range accordingly.