With the launch of Uniswap v3 bringing "Concentrated Liquidity offering unprecedented capital efficiency for liquidity providers", the charts below take a look at how liquidity providers are managing their capital across the top four ETH pairs on Uniswap V3.

It's just at the beginning of UniswapV3 so the liquidity providers will only get more efficient as they get more experienced at adjusting their positions. There are services which will soon be able to automate liquidity adjustments which should be able to increase the capital efficiency of these pools.

It will be interesting to see how LPs develop their strategies going forward on Uniswap V3.

The two stablecoins to ETH pools seem place their liquidity a little above the price of ETH, possibly to anticipate a move up in the price of ETH and to be ready to capture the fees when it does. It would look though that positions are not being altered in time to keep inline with price action. This can be seen on May 19th as the fall in the price of ETH moved towards the lower average bound of the LPs distribution.

What is interesting to see is that the two pools with volatile assets on both sides of the pool seem to keep their positions closer inline to the price of ETH. Possibly this might be that they are adjusting their positions more often due to the increased movements of both tokens in the pool as apposed to one being a stablecoin. Although not if they are both moving line with each other.

As you can see from the hover-over the black line is the price of ETH and the three volatile lines show the average; upper, middle and lower bounds of the LPs positions in the pool. These averages are weighted by the size of the LPs liquidity to better show where the majority of the liquidity is going.

The following line charts show the changes in LPs' positions in the new UniswapV3 pools. The first days of the UniswapV3 pools have been filtered out as there are a lot of wild upper and lower prices set for liquidity ranges as LPs try to understand the new pool mechanism. A few upper price positions of over $9k have also been filtered out. This is to stop the axis expanding too far to see the movements in the ETH price line; apologies to any moon boys/girls for this omission.