This is a good way of looking at it. If you deposit e.g. $1m ETH and $1m USDT in an ETH/USDT pool and then short $1m of ETH perpetual swaps you are delta neutral, lose if the px goes up or down, and collect on pool fees and swap funding rate (assuming funding rate is positive)
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Pools with px ranges have a formula like (x+a)(y+b)=k rather than xy=k, where you can choose a, b to set a px range. The effect is that you participate more in swap fees when px is within the range, but you get completely wiped out if px moves outside the range.
I had a go at explaining it (with more math) here -https://twitter.com/macrocephalopod/status/1414639678947475462?s=20 …