- Price Range

Uniswap V3 pioneered the concept of "concentrated liquidity" where users can specify a price range they want to provide liquidity to. This means instead of all user LP positions receiving a share of trading fee every time an AMM swap occurs regardless of asset price, the LP position in Uniswap V3 will be active and earn trading fee only when the asset price is in a selected price range.

In the integration with Uniswap V3, Stella Strategy simplifies the process of providing liquidity by creating 3 different instant price ranges: Wide, Medium and Narrow. Each price range has different minimum and maximum asset price resulting in different risk and return within the same strategy. The more narrow range will be more likely to earn higher trading fees.