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Alternate cryptocurrencies => Altcoin Discussion => Topic started by: Croin on December 11, 2021, 04:19:32 AM



Title: Uniswap V3 - Concentrated liquidity ?
Post by: Croin on December 11, 2021, 04:19:32 AM
Hey guys!

lets assume we have a pool A/B, and we set up the concnetration liquidity border at certain cutoff value.
Now the price drops below this range.

Will I be left with just one of the assets then?
So when I will try to withdraw, I will just have 100%A/0%B ?

Did I get it or not?

Thank you!


Title: Re: Uniswap V3 - Concentrated liquidity ?
Post by: barabeku on December 11, 2021, 04:49:18 AM
Hey guys!

lets assume we have a pool A/B, and we set up the concnetration liquidity border at certain cutoff value.
Now the price drops below this range.

Will I be left with just one of the assets then?
So when I will try to withdraw, I will just have 100%A/0%B ?

Did I get it or not?

Thank you!
That's right. When the price reach the minimum price or the maximum from that you have chosen, you are left with one asset 100%. And you don't get commissions then. While you are in your selected range, price are also changing and you get more tokens, it is called impermanent loss, but actually, you get good commissions (up to 1%), so they can cover you impermanent loss, what is more, the price may return. 


Title: Re: Uniswap V3 - Concentrated liquidity ?
Post by: susuberuang on December 11, 2021, 06:03:08 AM
Hey guys!

lets assume we have a pool A/B, and we set up the concnetration liquidity border at certain cutoff value.
Now the price drops below this range.

Will I be left with just one of the assets then?
So when I will try to withdraw, I will just have 100%A/0%B ?

Did I get it or not?

Thank you!
I have absolutely no idea what you mean and as long as I've used Uniswap it's the only exchange that costs a lot of transaction fees and some people just can't bear to use it again at this point including myself.