What does out of range liquidity mean?#
Out of range liquidity refers to a position whose set price range is outside a pool's current price.
Out of range liquidity happens when the current price of a pool moves outside a position's set price range due to swap activity.
Liquidity providers can also add liquidity out of range intentionally by setting a position's price range above or below the current price in a pool. While out of range, a provider can add liquidity using only one of the two tokens.
Important: Out of range liquidity is single-sided and does not earn fees until the current price of the pool moves into the set range. This is only possible with concentrated liquidity on CenturionDEX v3.
A position can become out of range whenever swap activity moves the pool's current price outside the position's set price range. When that happens, the position holds only one token and stops earning fees until price returns.