What is single-sided liquidity?
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A position is single-sided when it contains only one of the two pooled tokens. This happens in two ways:
- At creation — the provider sets a range entirely above or below the current spot price and deposits only the corresponding token.
- After price movement — the spot price moves out of an existing range, converting the position fully into one asset.
Single-sided positions are out of range and earn no fees until the spot price enters the specified bounds. This mechanic is unique to v3's concentrated-liquidity model.
For related concepts, see Out-of-range positions and Range orders.