Uniswap’s shift from v2 to v3 was an epochal moment in DeFi, with consequences that the crypto world hasn’t yet fully grasped. That update brought markedly greater capital efficiency for buyers, but the brave new world it ushered in has had negative consequences for many liquidity providers. In particular, the claim that v3 is better for passive liquidity providers, or LPs, will be contested in this article by exploring a series of trends related to v3 liquidity providers (with particular focus on passive and retail LPs). Some initial understanding of AMMs and features of the ETH base layer is assumed, but nothing beyond that is required. What follows is a relatively non-technical exploration of certain externalities of v3: the gold standard of more technical explanations is Guillaume Lambert’s
This is extremely well written, well edited. Thank you.
Thank you. Awesome article