• Corpus ID: 235606357

Strategic Liquidity Provision in Uniswap v3

@article{Neuder2021StrategicLP,
  title={Strategic Liquidity Provision in Uniswap v3},
  author={Michael Neuder and Rithvik Rao and Daniel J. Moroz and David C. Parkes},
  journal={ArXiv},
  year={2021},
  volume={abs/2106.12033}
}
Uniswap is the largest decentralized exchange for digital currencies. The newest version, called Uniswap v3, allows liquidity providers to allocate liquidity to one or more closed intervals of the price of an asset, instead of over the total range of prices. While the price of the asset remains in that interval, the liquidity provider earns rewards proportionally to the amount of liquidity allocated. This induces the problem of strategic liquidity provision: smaller intervals result in higher… 
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