Glossary
What is Uniswap V3?
Uniswap V3 introduced concentrated liquidity, letting providers commit capital to a specific price range and represent each position as an NFT.
By concentrating liquidity where trading actually happens, V3 providers earn far more fees per dollar than in V2 — but they must manage their range and can stop earning if price moves outside it.
Because positions are NFTs, not fungible LP tokens, V3 liquidity is managed per-position. Monmint supports opening, claiming fees from, and removing V3 positions on Monad.
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Related terms
- Uniswap V2Uniswap V2 is the constant-product AMM design where liquidity is spread evenly across all prices and providers receive fungible LP tokens.
- Concentrated liquidityConcentrated liquidity lets a provider supply liquidity only within a chosen price range, earning more fees on the same capital than a full-range position.
- AMMAn automated market maker (AMM) is the algorithm a DEX pool uses to price trades from its token reserves, instead of matching individual buy and sell orders.
- LP tokenAn LP (liquidity-provider) token is a receipt a DEX gives you when you deposit into a liquidity pool; it represents your share of that pool.