JEL Code
A12, B22, E31
Abstract
This article aims to offer a new vision on concentrated liquidity in Uniswap V3 and how we can effectively optimize liquidity thanks to the new tools provided by the DeFi ecosystem. Since the concept of concentrated liquidity first appeared in 2021 with Uniswap V3, new tools have been emerging to improve the security of smart contracts and offer better incentives to liquidity providers. This paper aims to propose a liquidity strategy concentrated in DeFi in order to draw additional liquidity in times of quantitative tightening and high interest rates, while trying to optimize the choice of the range to mitigate the non-permanent loss effect as long as our position is open.
Recommended Citation
Spinoglio, Francesco
(2024)
"Concentrated liquidity in Uniswap V3: A new strategy to optimize the capital bear market,"
Journal of New Finance: Vol. 3:
No.
2, Article 1.
DOI: 10.46671/2521-2486.1032
Available at:
https://jnf.ufm.edu/journal/vol3/iss2/1
Submission Date
6-7-2023
Approval Date
11-14-2023
Publication Date
1-17-2024