Uniswap v3: why concentrated liquidity changed the math — and what traders and LPs should actually do
Misconception first: many users still assume liquidity provision on Uniswap is a passive, “set-and-forget” way to earn yield while holding tokens. That was broadly true for early AMMs, but Uniswap v3 rewired the mechanics. Instead of spreading capital evenly across all possible prices, v3 lets Liquidity Providers (LPs) concentrate liquidity into custom price ranges. That …
