> ## Documentation Index
> Fetch the complete documentation index at: https://docs.theblockchainlibrary.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Uniswap V3 Core

> The Uniswap V3 whitepaper introduces the concept of concentrated liquidity, a major shift from the infinite range liquidity provision model used in previous ite

# Uniswap V3 Core

The Uniswap V3 whitepaper introduces the concept of concentrated liquidity, a major shift from the infinite range liquidity provision model used in previous ite

## Abstract

The Uniswap V3 whitepaper introduces the concept of concentrated liquidity, a major shift from the infinite range liquidity provision model used in previous iterations. By allowing liquidity providers (LPs) to allocate capital within specific price ranges, V3 drastically enhances capital efficiency, enabling LPs to earn higher fees with less capital while simultaneously reducing slippage for traders. The paper details the move from fungible ERC-20 LP tokens to non-fungible ERC-721 tokens, which represent individual liquidity positions. This architecture change supports multiple fee tiers for assets with different volatility profiles and introduces 'ticks' to manage discrete price ranges effectively. The protocol also optimizes the oracle mechanism by storing observations in a circular buffer, making historical price data significantly more efficient to retrieve. V3 represents a transition toward professionalized liquidity management, requiring LPs to actively manage their price ranges to optimize yields, thereby shaping the infrastructure for institutional-grade DeFi liquidity.

**Authors:** Hayden Adams, Noah Zinsmeister, Dan Robinson

**Publication:** Project Whitepaper

**Publication date:** 2021-01-01

## Key findings

* Concentrated liquidity allows LPs to target specific price ranges, significantly increasing capital efficiency.
* Transitioned from ERC-20 to ERC-721 liquidity position tokens to account for individualized position parameters.
* Introduced multiple fee tiers to better account for asset volatility and risk.
* Upgraded oracle capabilities by utilizing a circular buffer for efficient historical price sampling.

## Citation

Hayden Adams, Noah Zinsmeister, Dan Robinson (2021). Uniswap V3 Core. Project Whitepaper. [https://uniswap.org/whitepaper-v3.pdf](https://uniswap.org/whitepaper-v3.pdf)

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***

**Canonical knowledge ID:** `research:uniswap-v3-core`