Uniswap V3: All about LPs

    This dashboard takes a closer look at everything about liquidity providers in Uniswap V3. Last edited May 31, 2021.

    Below is a graph of the total associated gas fees in USD. Notice that they are (for the most part) proportionate to the number of positions created/changed.

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    Position Changes

    The below graph contains daily positions created on V3 over time. Notice that on May 5th and 6th that there were a higher variety of pools with over 50 positions created. Throughout time, pools with ETH, BTC, stable coins (such as DAI, USDT, USDC), and UNI have shown the most changes.

    Whale Sightings

    Let's now take a look at providers with the most liquidity and providers who have received the most fees. This table is normally ordered by liquidity provided, but you can order the list by fees collected as well.

    Introduction

    This dashboard contains data on Uniswap V3's LPs and liquidity pools. In Uniswap V3, there are three different pools for the same pair of tokens separated by tick spacing and pool fees.

    The following table contains a breakdown of liquidity concentration by these pools with the following labels.

    • low fees meaning 0.05% fees
    • mid fees meaning 0.6% fees
    • high fees meaning 1% fees
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    Ethereum

    Ethereum's range seems to be somewhat different with more positions with under 30% ceiling prices being made after May 24th, 2021. On the lower end, most positions are being created with a price floor under 30% of the price average. It is interesting to note that positions created with a price range of under 5% contribute to a rough estimate of 15% of daily positions. More of these positions were created after the aforementioned crash, with more positions being created under a 5% price delta beginning May 23rd, 2021.

    The difference seen between ETH and UNI could be related to the number of positions in ETH vs UNI. LPs with narrower positions are more competitive for fees compared with wider position LPs. UNI has a much lower amount of positions that need to compete for fees, so they are less interested in making narrow positions due to gas fees required to switch positions when the price falls outside their range.

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    Position Widths

    Choosing liquidity widths is a new function in Uniswap V3. Having positions with narrow price widths is advantageous because if prices of tokens fall, there is a chance of impermanent loss as well as slippage in fees generated. Let's take a deeper dive into UNI and ETH.

    Uniswap

    The first graph below shows the daily price average of UNI over time with percentage differences that were used to group positions created. The thresholds chosen were grouped by those positions with a price range under 5%, under 30%, and over 50%.

    These next two graphs show the number of total positions created within pools with UNI as a token. After the crash of nearly 50% from May 19th to May 22nd, 2021, a larger number of positions were created with an upper price threshold of over 50%. On the lower side, price thresholds are tighter, sitting mostly under 30% of the price average. This minimizes the risk of negative price slippage but gives room for UNI to grow back to its all-time high (ATH).

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