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Concentrated liquidity lets you focus your tokens in a price range you choose, so they earn far more trading fees than they would spread across every price. In return, your position needs a little attention. Each Concentrated position is represented as an NFT you can see and manage. New to this? Read Provide Liquidity: Classic vs Concentrated and Impermanent Loss, Explained first.

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Before you start

  • Your wallet is connected and on Arbitrum One
  • You hold the two tokens of the pair (or one that you can split)
  • You have a little ETH for the network fee

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How to add Concentrated liquidity

  1. Go to the Liquidity page and choose Concentrated.
  2. Select the token pair and a fee tier (see below).
  3. Choose your price range. You can use a preset or set it manually:
    • Full Range: behaves like Classic, spread across all prices. Safest, lowest earning.
    • Safe (±10%): a wide range around the current price. Balanced.
    • Concentrated (±2%): a tight range near the current price. Highest earning, needs the most attention.
  4. Enter your token amounts. An interactive chart shows the current price and your selected range.
  5. Approve the tokens in your wallet if prompted (one-time per token).
  6. Click Add and confirm. You receive a position NFT representing this Concentrated position.
Concentrated range selector with liquidity depth chart

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Choosing a fee tier

Each pool has a fee level that traders pay and you earn. Common tiers:
  • 0.05%: best for very stable pairs (e.g. two stablecoins)
  • 0.30%: a good default for most pairs
  • 1.00%: for volatile or exotic pairs
Higher fee tiers earn more per trade but may see less trading volume. When in doubt, 0.30% is a sensible starting point for most pairs.

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The key idea: “in range” vs “out of range”

Your Concentrated position only earns fees while the market price is inside the range you chose:
  • 🟢 In range: the current price is within your band. You’re actively earning fees.
  • ⚪ Out of range: the price has moved past your band. You’ve stopped earning until the price returns or you adjust your range.
This is the trade-off of Concentrated: a tighter range earns more while in range, but goes out of range more easily. A wider range earns less but stays active longer.
Tip: If you don’t want to babysit a position, pick Safe (±10%) or Full Range. If you’re actively watching the market, Concentrated (±2%) can earn the most.

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How you earn (and collecting fees)

Fees you earn accumulate on your position and are shown as unclaimed fees. Unlike Classic, in Concentrated pools you collect these fees whenever you like, without withdrawing your liquidity. See Manage Your Positions.

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Managing the position afterward

From Manage Your Positions you can:
  • Collect your unclaimed fees at any time
  • Increase liquidity (add more)
  • Remove liquidity (partially or fully)
  • See whether the position is in or out of range

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Things to keep in mind

  • Out-of-range positions earn nothing until the price comes back or you re-set the range. Check your positions periodically.
  • Impermanent loss still applies, and can be more pronounced with tight ranges. Learn why →
  • Each position is an NFT. It’s yours, held in your wallet; don’t send it away unless you intend to transfer the position itself.

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Prefer something hands-off?

Then Classic may suit you better: Add Liquidity (Classic).