What is Out-of-Range?
Out-of-range refers to the situation where the current market price falls outside of your initial price range that you set when adding liquidity.
For example, if you provided liquidity for GLMR-USDC pool at a range of $0.30 - $0.60 at the start and after a few days, the market price goes to $0.70, then your position is considered "Out-of-Range".
If your position is out-of-range, you WILL NOT earn any trade fees or farm rewards. It is important to re-manage your positions to be in range to start earning.
In the event the market price goes outside of your LP's price bounds, your position will be singularly concentrated in the less valuable asset. For example, if you provided liquidity between the price range of $0.30 — $0.60 for GLMR/USDC and GLMR falls to $0.25, then your position will be entirely concentrated in GLMR. Conversely, if GLMR appreciates to $0.80, then your balance will be entirely concentrated in USDC.
If you're OOR here are the list of possible actions you can undertake;
- 1.Do nothing and wait until prices revert back to your established range and you''' start to earn.
- 2.Actively manage your positions to ensure you don't face OOR
- 3.Use an Active Liquidity Manager (ALM) to automate your farming on Pulsar so you'll not OOR