Strategies and price ranges
A liquidity pool enables swaps between two tokens. Your position supplies liquidity within a chosen price range and can earn trading fees when swaps use it. Fee income depends on pool activity, your share of active liquidity, and time spent in range.
Choose a preset
Open Earn to compare three ready-made strategies. The standard preset flow uses the WETH/USDC pool on Base.
| Strategy | Range approach | What to consider |
|---|---|---|
| Conservative | Wider | Spreads liquidity over more prices. |
| Balanced | Intermediate | Offers a middle level of concentration. |
| Aggressive | Narrower | Concentrates liquidity more strongly, with a greater chance of leaving the range. |
These names describe relative settings, not guaranteed safety or returns. Even a wider range can lose value. Select a strategy, enter an amount, then review the position before confirming. Flowlex Pro adds custom bounds and pool selection where available.
What happens as prices move?
For an illustrative ETH/USDC position with a range of 1,600–2,400 USDC per ETH:
| ETH price | Underlying liquidity |
|---|---|
| Below 1,600 | ETH; inactive and not earning new trading fees. |
| 1,600 to below 2,400 | Active; the ETH/USDC mix changes with price. At the lower boundary it holds ETH only. |
| 2,400 or above | USDC; inactive and not earning new trading fees. |
This simplified example uses no live prices and excludes previously earned fees. Active liquidity earns only when swaps use it.
An out-of-range position still exists, and its value can change. Previously accrued fees remain separate. If the price returns, liquidity can become active again.
You decide whether to wait, rebalance, or close. Choosing a preset does not make the range follow the market automatically. Read Managing positions and Ownership and risks before acting.
For more on the underlying mechanism, see Uniswap's explanation of concentrated liquidity.