How Do Concentrated Liquidity Pools Attempt to Mitigate Impermanent Loss?

Concentrated liquidity pools allow liquidity providers to allocate their capital within a narrow, specified price range instead of the full 0 to infinity range. This increases capital efficiency and allows them to earn higher fees when the asset price is within their range.

While it does not eliminate impermanent loss, it aims to offset it with higher trading fees earned in the active range.