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  • Charm Overview
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  • ALPHA PRO
    • Overview
    • Background
    • The challenges
      • What are projects doing now
    • The Alpha Pro solution
      • Use cases
    • How it works
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  1. ALPHA PRO

The challenges

PreviousBackgroundNextWhat are projects doing now

Last updated 3 years ago

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Uniswap V3 provides better liquidity and price discovery, but presents some challenges for token launches, liquidity mining, and liquidity provision.

  • is difficult, because LPs have to choose a range, and rebalance it to stay within range.

  • LPs have substantially of impermanent losses (IL) on V3, compared to V2.

  • Tokens have no liquidity if they are traded outside a range.

  • Directly incentivising a V3 pool (eg using the ) means a few wallets can extract most of the incentives (eg if they provide ).

  • Positions on V3 are not ERC-20, and therefore cannot be used for liquidity mining.

Providing liquidity into V3
higher risk
V3 staker
narrow liquidity
standardised staking contracts