Eidode / Simulators / Uniswap V3
Uniswap V3 Simulator — Concentrated Liquidity
V3 lets LPs concentrate liquidity into a narrow price band — capital efficiency up to 4000× vs V2. The trade-off: you must monitor the position; if price exits the range, fees stop. Drag the handles below to set a range, move the price marker, see the histogram of other LPs in the pool.
Drag the green/red handles to change the range. Drag the black dot to simulate price moves.
Your position at $2,000
Capital efficiency vs V2
10.0×
Inside [1800, 2200], the same capital works 10.0× as hard as it would in V2. Narrower ranges = higher efficiency, but easier to fall out of range.
Enter exact numbers (or drag the chart handles above)
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V3 vs V2 — the core differences
V3 lets LPs choose a price range [Pa, Pb]. Their capital only works inside that band — but inside it, efficiency is up to 4,000× higher than V2. V3 positions are NFTs (ERC-721) instead of fungible ERC-20 LP tokens, and V3 offers three fee tiers (0.05% / 0.3% / 1%) instead of V2's single 0.3%.
When to use V3 instead of V2
V3 fits anyone able to rebalance ranges manually or via a bot. Stablecoin pairs (USDC/USDT) are ideal for V3 — price barely moves, so a tight 0.99–1.01 range earns fees with very low risk. Volatile pairs like ETH/USDC need wider ranges and active monitoring. Beginners are usually better off with V2 or an automated liquidity manager (Arrakis, Gamma) rather than raw V3.
Three fee tiers on V3 — which to pick?
0.05%: stablecoin pairs (USDC/USDT, DAI/USDC) — low volatility, high volume. 0.3%: blue-chip volatile pairs (ETH/USDC, WBTC/USDC) — the most common tier. 1%: exotic / long-tail pairs (small altcoins) — high volatility and high IL.
Frequently Asked Questions
+What is concentrated liquidity?
Unlike V2 where liquidity spreads from 0 to infinity, V3 lets each LP pick a price range [Pa, Pb]. Capital only works inside that range — in exchange, efficiency rises by tens to thousands of times.
+When does a position go out of range?
When the market price moves above Pb (max) or below Pa (min). The position then becomes 100% one of the two tokens and stops earning fees until price returns to the range.
+What is a tick in V3?
A tick is a discrete price unit — each tick corresponds to a 0.01% price difference (log base 1.0001). LPs place positions between two ticks. This simulator uses floating-point prices for clarity; production code uses integer ticks.
+Is V3 always better than V2 for LPs?
Not always. V3 demands active management — you must rebalance the range when price moves. Passive LPs often underperform V2 on V3 because they forget to rebalance. V3 only beats V2 if you (or a bot) stay on top of it.
+Narrow vs wide range — which to pick?
Narrow = high capital efficiency + frequent out-of-range. Wide = lower efficiency + less rebalancing. Pros use narrow ranges with bots. Beginners should pick wider ranges (±20–30% from spot).