What is a Range Width?
Learn how range width affects your earnings and how to pick the right one.
Key Takeaways
- Range width controls how far the price can move before a rebalance
- Narrow ranges earn more per trade but rebalance more often
- Use MaxFi's defaults or the backtest tool to find the best width
What Range Width Means
Your range width is the price zone where your position earns fees. Think of it as how wide your net is.
A 5% range means your position covers the current price plus or minus 2.5% in each direction. If ETH is at $2,500, your range would be roughly $2,437 to $2,563.
A 20% range would cover $2,250 to $2,750. Much wider.
Narrow vs Wide
Narrow range (1-5%):
- Earns more fees per trade (your capital is more concentrated)
- Goes out of range more often
- Rebalances more frequently
- Best for stable prices or stablecoin pairs
Wide range (10-30%):
- Earns fewer fees per trade
- Stays in range longer
- Rebalances less often
- Better for volatile pairs
The Sweet Spot
The best range width depends on the pool. WETH/USDC might do well at 5%. A volatile altcoin pair might need 20% or more.
MaxFi's defaults are optimized using historical data. They represent the sweet spot between earning power and rebalance frequency.
Want to experiment? Use the backtest tool. It shows historical performance for any range width on any pool.
How MaxFi Uses Range Width
When you first deposit, MaxFi centers the range around the current price using your chosen width.
When the price moves out of that range:
- MaxFi waits (rebalance delay)
- Then places a new range one tick spacing away from the current price
- Deposits your tokens single-sided into that range, no swap needed
Your range width stays the same. The new range is placed next to the current price, not centered on it. This is how zero-swap rebalancing works.
What You Learned
- Range width is how far the price can move before a rebalance happens
- Narrow ranges earn more per trade but rebalance more often
- Start with MaxFi's defaults or test with the backtest tool