Concentrated Liquidity Analysis in Uniswap V3

Research output: Chapter in Book/Report/Conference proceeding › Article in proceedings › Research

Uniswap V3 is one of the most successful decentralized exchanges for digital cryptocurrencies. The latest version of the Uniswap (V3) introduces a number of new features, notably the concentrated liquidity that allows the liquidity providers to add liquidity within a specific price range. In this paper, we analyze the effect of concentrated liquidity on the return of the liquidity providers and present an approximation for the expected fees and the impermanent loss of a liquidity provider. First, we provide analytical results and then verify them using simulations.
Original languageEnglish
Title of host publicationDeFi'22: Proceedings of the 2022 ACM CCS Workshop on Decentralized Finance and Security
Number of pages8
PublisherACM Association for Computing Machinery
Publication date2022
Pages63-70
ISBN (Electronic)978-1-4503-9882-4
DOIs
Publication statusPublished - 2022
Externally publishedYes
Event2022 ACM SIGSAC Conference on Computer and Communications Security - Los Angeles, United States
Duration: 11 Nov 2022 → 11 Nov 2022

Conference

Conference2022 ACM SIGSAC Conference on Computer and Communications Security
LandUnited States
ByLos Angeles
Periode11/11/2022 → 11/11/2022

ID: 330844480