As one of the most eagerly anticipated rollouts of the decentralized finance (DeFi) sector, Uniswap v3 went live on May 5. The upgrade targeted greater capital efficiency and better flexibility for liquidity providers.
The concept of Uniswap v3 includes features such as concentrated liquidity — which allows liquidity providers (LPs) to allocate their capital in certain price ranges rather than distribute liquidity across the entire price curve — as well as multiple fee tier systems which help LPs to adjust to varying degrees of risk.