Concentrated liquidity is when you lock capital into a narrow price range instead of spreading it across a wide band. The tighter your range, the more fees you earn from swaps that hit that zone—because your tokens are doing more work per dollar deployed. But here's the catch: if the price moves outside your range, your liquidity becomes inactive and you stop earning fees instantly. You're left holding one asset while the market moves against you, which is why this strategy is riskier than old-school liquidity pools. The real skill is predicting which price bands will see the most action. Get it right and you'll earn fees faster than a wide-range provider. Get it wrong and you're stuck babysitting a dead position, watching the market move without you—no eggs in that basket. Concentrated ranges = higher fee intensity but severe directional risk; pick your bands wisely.