Historical retrospective · DeFi
Uniswap v3 let liquidity providers choose price ranges
Uniswap v3 introduced concentrated liquidity, allowing providers to allocate capital within selected price ranges instead of across the full curve.
Capital can be used more efficiently near chosen prices, but positions require more active management as markets move.
The update turned many LP positions from passive deposits into strategies with range and rebalancing decisions.
Higher capital efficiency is not free yield: out-of-range positions may stop earning fees and can accumulate asset exposure.
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