Uniswap V3 revolutionized DEX trading with concentrated liquidity. Learn how to leverage its advanced features for more efficient trades and better returns as a liquidity provider.
What Changed in V3
Unlike V2’s uniform liquidity distribution, V3 lets liquidity providers concentrate their capital within specific price ranges. This results in up to 4000x capital efficiency for narrow ranges.
Trading on V3
For traders, V3 often provides better prices due to deeper liquidity at market prices. The interface remains simple—just swap tokens—but the underlying efficiency improvements mean less slippage.
Advanced Features
- Multiple fee tiers (0.05%, 0.3%, 1%)
- Range orders act like limit orders
- NFT-based LP positions for unique strategies