Choose a range width
Tight ranges earn more fees per dollar while the price stays inside, and lose more to arbitrage and re-centring when it doesn't. Wide ranges earn less but need little attention. This playbook finds the width where the balance is best for a pool, and checks it against how you want to manage it.
1. Look at every width at once
On the pool page, open Width vs net edge. For a $10,000 range kept centred, it shows seven widths side by side, with fees, LVR, re-centring costs and net APR.
Look for:
- Where net APR peaks. The star marks it. Tighter than that, costs grow faster than fees.
- Rebalances per day at that width. Above a handful a day, the width only works if re-centring is automated.
- Break-even vol σ* against today's σ. The wider the gap, the more a volatility rise the range can absorb.
2. Start from a preset
Open Plan a range. The presets translate volatility into how often you'll have to act:
| Preset | Width chosen so that a re-centre is expected about |
|---|---|
| Tight | Once a day |
| Standard | Every three days |
| Wide | Once a week |
Pick the preset that matches how often you're willing to re-centre, then adjust the width and watch net APR and σ*.
3. Check the kind of hours you'll be in range
Switch the planner between Last 24h, US session, Weekday off-hours and Weekend.
- If fees come mostly from the session, a tight range earns most of its keep in a few hours a day, and also meets the open's jump.
- If off-hours and weekends pay well, often thanks to memes, a range that sits through the night can do well without facing the open.
4. See who you'd share fees with
In the planner chart, look at the liquidity your range covers. A tall bar at the price means a large LP is already there; a new position takes a small share of each swap until the price moves off that bar.
Who you'd sit beside gives the share held by tight LPs. When tight LPs already hold most of the liquidity at the price, going tight means competing with professionals who re-centre constantly.
5. Sanity-check against real positions
Open open positions, filter by width, and sort by APR. If positions at your width are mostly losing, find out why before assuming the model is right. See Learn from the LPs already in a pool.
Rules of thumb
- Wider when volatility is rising. A vol spike flag or IV well above realised vol means ranges get run over more often.
- Wider across the open unless you're actively managing it.
- Tighter only with automation. Past a few re-centres a day, the planner's assumption of instant re-centring stops being close to reality.