Try Quests to earn crypto🦄 V3 🥳
Uniswap V3 introduces a new set of features that refine and expand on AMM design. The defining concept behind V3 is the idea of concentrated liquidity, liquidity that is allocated within a custom price boundary. In early versions of Uniswap, liquidity was distributed uniformly, which allowed trading across the entire price interval. The main problem here is that the majority of liquidity was never used. With the introduction of V3 liquidity providers may concentrate their capital to smaller price intervals, also known as a position. This permits each LP (liquidity provider) to create individualized price curves to reflect their own preferences.