A range order refers to adding single-sided liquidity with the intent of removing the liquidity after the position is fully converted into the other token in the pool.
Liquidity providers use range orders to convert one token into another within a specific price range, much like a limit order.
Range orders are made by adding liquidity with a price range outside of the pool’s current price. While out of range, providers can add liquidity using only one of the two tokens in the pool.
When the current price in a pool fluctuates within the set price range, the amounts of each token held in the position will change accordingly.
If the current price is exactly in the middle of the set price range, the added liquidity will be split evenly between the two tokens' USD values.
The provider will remove the liquidity shortly after the current price moves outside of the set price range and the added token is fully converted into the desired token. This action completes the range order.
Removing the liquidity while the current price is in the position’s price range will result in receiving some of each token and the range order will be incomplete.
For more information on range orders, see this documentation.
Important note: Range orders are out of range, single-sided, and do not earn fees until the current price of the pool moves into the set range. This is only possible with concentrated liquidity on Uniswap v3 and v4.
Here is an example of a range order with a price range above the current price:
Here is an example of a range order with a price range below the current price: