What is a Range Width?

Your Earnings Zone

Range width is the size of your price zone. It tells Snuggle how far the price can move before your position needs a rebalance.

Think of it like a soccer goal. A wide goal is easier to defend. A narrow goal lets more shots through. Range width works the same way.

How It Is Measured

Range width is a percentage. A 5% range means the price can move 2.5% above or 2.5% below the current price.

If ETH is at $3,000 with a 5% range, your position covers $2,925 to $3,075. Trades in that zone earn you fees.

Narrow vs Wide

Narrow ranges (2-5%) earn more fees per dollar. Your money is concentrated in a small zone. You get a bigger share of every trade. But the price leaves the zone more often. More rebalances happen.

Wide ranges (10-20%) earn fewer fees per dollar. Your money is spread thinner. But the price stays in range longer. Fewer rebalances needed.

The Trade-Off

Each rebalance creates a small amount of impermanent loss. The key is finding the sweet spot.

Too narrow and you rebalance constantly, increasing IL. Too wide and you earn less per trade. You leave money on the table. Snuggle covers all rebalance gas costs, so the only cost of rebalancing is IL.

Finding the Right Width

Snuggle has a backtest tool that solves this. It tests every range width against real historical data. It shows you which width earned the most after all costs.

Stable pairs like USDC/USDT work best with narrow ranges (1-3%). The price barely moves. Volatile pairs like ETH/USDC need wider ranges (5-10%). The price swings more.

You pick your range width when you deposit. You can change it anytime in your position settings.

What You Learned

• Range width is how far the price can move before your position rebalances
• Narrower ranges earn more fees but rebalance more often
• Use the backtest tool to find the optimal width for your pool