KyberSwap Elastic pools allow you to specify liquidity concentration ranges. When the market price of the asset pair is within this specified price range, price takers can trade using the liquidity you have deposited to the pool. You can make the range as wide or as narrow as you want but there are some tradeoffs to consider in each case.
When the range is set to be relatively wide, the pool has a lower chance of going out of range so it will remain in operation for more time, but you will earn less fees on each transaction since your liquidity is spread out more thinly across a wider range.
When the range is set to be relatively narrow, your liquidity is more concentrated which will result in higher fees earned per transaction, but this comes at the higher risk of the pool going out of range resulting in longer periods when your liquidity is not being traded against.