GlossaryConcentrated liquidity
Concentrated liquidity is a model where liquidity providers commit their capital to a chosen price range instead of the full price curve, earning more fees on the same capital while the price stays in range.
Pioneered by Uniswap v3 and available on Base, for example through Aerodrome Slipstream. Out-of-range positions stop earning and need active rebalancing, which increases impermanent loss.