Calculate capital efficiency of concentrated liquidity positions. Compare full-range vs narrow-range LP to see how much more fees you earn per dollar deployed.
Concentrated liquidity revolutionized DeFi by allowing liquidity providers to focus their capital within a specific price range. Instead of spreading liquidity across the entire price spectrum (0 to infinity), you can concentrate it in a narrow band around the current price, dramatically increasing capital efficiency.
This Concentrated Liquidity Calculator shows how much more efficient a narrow range is compared to a full-range position. Enter your price range bounds and the current price, and the tool computes the capital efficiency multiplier — how many times more fees you earn per dollar deployed.
A position concentrated between $1,900 and $2,100 when the price is $2,000 might be 20x more capital efficient than a full-range position. This means $1,000 in a narrow range earns the same fees as $20,000 in a full range.
Crypto traders, long-term holders, and DeFi participants benefit from transparent crypto concentrated liquidity calculations when planning entries, exits, or portfolio rebalances. Revisit this calculator whenever market conditions shift to keep your strategy grounded in accurate data.
Concentrated liquidity lets you earn more fees with less capital, but it requires active management. This calculator quantifies the efficiency gains so you can right-size your range and capital deployment. Real-time recalculation lets you model different market scenarios quickly, so you can act with confidence rather than relying on rough mental estimates.
Capital Efficiency = 1 / (1 − √(pLow/pHigh)). This is the multiplier showing how many fewer dollars you need to provide the same liquidity depth as a full-range position.
Result: 10.5x capital efficiency
A position from $1,800 to $2,200 when price is $2,000 gives 1/(1−√(1800/2200)) = 10.5x capital efficiency. $1,000 in this range provides the same liquidity depth as $10,500 in a full-range position.
A $10,000 full-range Uniswap v2 position might earn $2/day in fees. The same $10,000 concentrated in a ±5% range could earn $50/day — a 25x improvement. But if the price moves 6%, you stop earning entirely.
Active management is the cost of high efficiency. You need to monitor prices, rebalance when out of range, and adjust widths based on volatility. Automated managers (Arrakis, Gamma, Bunni) handle this for a fee, typically 10-20% of earned fees.
There's an optimal range width for every pair and market condition. Too narrow and you're always rebalancing with high gas costs. Too wide and you lose the efficiency advantage. Backtesting historical price data helps find the sweet spot.
Your position becomes 100% one token and stops earning fees. You hold only the less valuable token. You can wait for the price to return, or withdraw and reposition at the current price.
It depends on the pair's volatility and your management frequency. Stablecoin pairs can use very narrow ranges (0.1%). Volatile pairs need wider ranges (10-50%) unless you're actively managing.
It amplifies both returns and risks. You earn more fees in range but suffer more impermanent loss when the price moves. Going out of range means zero fee income. Active management is essential.
Yes. If you're bullish on a token, you might set a range like $1,800-$3,000 instead of a symmetric range. This is a directional liquidity position — part LP, part limit order.
A range order is a concentrated liquidity position set entirely above or below the current price. It acts like a limit order that earns fees while waiting to fill. Once filled, you can withdraw the converted tokens.
Concentrated positions amplify IL proportionally to the capital efficiency multiplier. A 10x efficient position has roughly 10x the IL per dollar deployed. The higher fees must compensate for this increased IL.