Range orders

Overview

Range orders are price bands on a CLMM that behave like smart limit orders with an added benefit: while execution occurs inside the band, you earn trading fees for providing liquidity.

Mechanics

You choose a price band relative to the current market price. When the price enters this band, your liquidity is used to swap one asset for the other. As long as the price remains inside the band, trades route through your liquidity and you earn fees.

Range orders can be set either below or above the current price:

• Buy orders: Place a narrow band below the market price and fund it with the asset you want to spend. As the price moves down into the band, your position accumulates the target asset while earning fees.

• Sell orders: Place a band above the market price and fund it with the asset you want to sell. As the price moves up into the band, your position gradually sells into the market while also collecting fees.

This structure allows you to replicate limit-style buying or selling, but with the added benefit of fee income and without the need for continuous monitoring.

Here is an example of a range order with a price range above the current price:

Here is an example of a range order with a price range below the current price: