Out of Range Positions

    Visualizing the proportion of active positions on Uniswap V3 that have been out of range vs. in range daily since the launch of Uniswap v3.

    Findings & Conclusion

    The first month into the launch of Uniswap v3 recorded no positions out of range. However, positions started moving out of range in early June 2021. This can be attributed to liquidity providers experimenting with v3 ranges. The number of LP positions moving out of range has since fallen below 3 figures with decreasing number of positions.

    Looking at the chart movements above, it is reasonable to conclude that the number of positions moving out of range is directly proportional to the total number of positions.

    Positions

    The graph below showcases the number of positions that are in and out of range on a day-to-day basis since Uniswap v3 genesis.

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    Method

    To get the positions in and out of range, the uniswapv3.positions table is queried and the results are grouped by day and is_active column.

    Introduction

    In Uniswap v2, liquidity is evenly distributed along x*y=k price curve, with assets reserved for all prices between 0 and infinity. Uniswap v3 introduced concentrated liquidity where liquidity providers can provide the same liquidity depth as v2 within specified price ranges while putting far less capital at risk.

    The purpose of this dashboard is to showcase v3 positions that have been in range and out of range daily since genesis.