Range Order

With the support of concentrated liquidity, users can access advanced trading strategies that are not possible on traditional standard-based DEXes.

By creating a liquidity position with a price range placed entirely on one side of the spot price, liquidity providers (LPs) can supply liquidity using a single-sided asset. This mechanism enables LPs to simulate limit orders, a feature commonly seen in orderbook markets or centralized exchanges (CEXs). The key distinction is that a traditional limit order specifies a fixed buy or sell price and may only execute once that price is reached, whereas a single-sided liquidity position in a concentrated liquidity protocol is defined by a price range. Once the market price enters this range, token swaps are continuously executed within the position. When the spot price fully traverses the range, all of the initial assets are converted into the target assets, which the LP can then withdraw to close the order. This mechanism is referred to as a range order.

In this model, it is the liquidity providers rather than swappers who place range orders, making them the makers of the market. As a result, LPs not only execute buy-at-dip and sell-at-rally strategies similar to professional traders, but also earn transaction fees in the process.