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Decentralized Exchanges

Uniswap V3: Capital Efficiency At Its Finest

Apr 15, 2021 ⋅  8 min read

The highly anticipated Uniswap V3 has finally been unveiled, and it has the potential to change the landscape of Decentralized Exchanges (DEXs) and the behavior of their key participants. By implementing concentrated liquidity through customizable price ranges, Uniswap V3 aims to significantly improve capital efficiency and trade execution quality. With concentrated liquidity, expect professional market makers and sophisticated yield aggregators to account for a majority of the pooled liquidity (at the expense of passive retail LPs), with liquidity concentrating around mid-market price

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