LP Positions

Uniswap V3 liquidity provider positions are represented as ERC721 NFTs. Have any LP positions been bought, sold, or transferred between wallets? In any case has the NFT been used in another protocol? Describe a case in which an NFT representing a LP position could be used in another defi protocol.

What are Uniswap V3 liquidity provider NFTs

These NFTs are given to liquidity providers on Uniswap V3 and represent the liquidity position that they took out, and the holder of the NFT has the ability to redeem the position from Uniswap. The image below is an example of one of these NFTs.

How could these NFTs be used in other Defi protocols?

One example of how these NFTs could be put to good use in another Defi protocol is they could be used as borrowing collateral on a protocol like AAVE or compound and could be lent out to people who want to short the position. This would allow people to earn yield on their collateral and short a liquidity position.

Uniswap V3 liquidity provider NFTs transfer analysis

The graphs below show:

(1). Number of Uniswap V3 liquidity provider NFTs transfers per day

(2). Uniswap V3 liquidity provider NFTs transfers recipients

(3). Uniswap V3 liquidity provider NFTs minting break down

Conclusion

(1). These NFT do not have a huge transfer volume only being sent between 10 - 100 times most days

(2). The protocols that are using these NFT seem to prefer to mint the NFTs themself rather than buy or transfer them.