/liquidity-planner

Position Types Reference

Comprehensive reference for Uniswap v2, v3, and v4 liquidity positions.

Version Comparison

V2 Positions

V2 Basics

V2 uses the constant product formula (x * y = k) across the entire price range.

Pros:

• Simple to understand and manage
• No rebalancing needed
• Lower gas costs
• Fungible LP tokens

Cons:

• Capital inefficient (liquidity spread across infinite range)
• Lower fee earnings per dollar deposited

URL Parameters for V2

V2 positions use a different URL structure:

https://app.uniswap.org/add/v2/{tokenA}/{tokenB}

Or with the unified interface:

https://app.uniswap.org/positions/create?version=v2&currencyA={}&currencyB={}

When to Use V2

• Very long-term, passive positions
• Pairs with extreme volatility where any range would be exceeded
• When gas costs for V3 management exceed benefits

V3 Positions

V3 Basics

V3 allows LPs to concentrate liquidity within custom price ranges, dramatically improving capital efficiency.

Fee Tiers

Tick Math

V3 uses discrete ticks to represent prices. Key concepts:

• Tick: Integer representing a price point
• Tick Spacing: Minimum distance between usable ticks (varies by fee tier)
• Price to Tick: tick = log(price) / log(1.0001)

Tick ranges by fee tier:

Price Range Strategies

Full Range:

{
  "fullRange": true
}

Characteristics:

• Behaves like V2
• Never goes out of range
• Lower capital efficiency

Tight Range (±5%):

{
  "fullRange": false,
  "minPrice": "3040",
  "maxPrice": "3360"
}

Characteristics:

• High capital efficiency
• High fee APR
• Requires frequent monitoring

Medium Range (±20%):

{
  "fullRange": false,
  "minPrice": "2560",
  "maxPrice": "3840"
}

Characteristics:

• Balanced approach
• Moderate monitoring
• Good for most users

Wide Range (±50%):

{
  "fullRange": false,
  "minPrice": "1600",
  "maxPrice": "4800"
}

Characteristics:

• More passive
• Lower concentration benefits
• Less monitoring needed

Position NFT

V3 positions are represented as NFTs (ERC-721):

• Each position has a unique token ID
• NFT contains position metadata (pool, range, liquidity)
• Can be transferred, sold, or used as collateral

v4 Positions

v4 Basics

v4 introduces hooks - custom smart contracts that can execute logic at various points in the pool lifecycle.

Key Differences from v3

1. Hooks: Custom logic for swaps, liquidity changes, etc.
2. Dynamic Fees: Fees can change based on conditions
3. Singleton Contract: All pools in one contract (gas savings)
4. Flash Accounting: More efficient multi-hop swaps

Hook Address Parameter

When creating v4 positions with hooks:

{
  "hook": "0x..."
}

The hook address determines which v4 pool to use.

v4 Availability

v4 is newer and has limited pool availability. Check if a v4 pool exists before suggesting it.

Chains with v4 support:

• Ethereum Mainnet (limited pools)
• Base (growing)
• Other L2s (expanding)

When to Use v4

• When specific hook functionality is needed
• For advanced use cases (TWAMM, limit orders, etc.)
• When v4 pool has better liquidity than v3

Chain Availability

Version Support by Chain

Recommendation by Chain

For most users on most chains: v3 with 0.3% fee tier

For stablecoin LPs: v3 with 0.01% or 0.05% fee tier

For advanced users: v4 if appropriate hook/pool exists

Impermanent Loss by Range

IL increases with range tightness and price movement:

*100% means position is entirely in one asset (out of range)

Deep Link Parameter Reference

IMPORTANT: URL Encoding Rules

Only encode double quotes (" → %22). Do NOT encode braces {}, colons :, or commas ,.

priceRangeState Object

interface PriceRangeState {
  priceInverted: boolean; // false for normal price direction
  fullRange: boolean; // true for full range, false for custom
  minPrice: string; // Min price as string (empty for full range)
  maxPrice: string; // Max price as string (empty for full range)
  initialPrice: string; // Empty string for existing pools
  inputMode: string; // Always "price"
}

depositState Object

interface DepositState {
  exactField: 'TOKEN0' | 'TOKEN1'; // TOKEN0 = currencyA, TOKEN1 = currencyB
  exactAmounts: {
    TOKEN0?: string;
    TOKEN1?: string;
  };
}

fee Object

interface FeeData {
  feeAmount: number; // Fee in hundredths of a bip (3000 = 0.3%)
  tickSpacing: number; // Tick spacing for the fee tier
  isDynamic: boolean; // false for V3, can be true for V4
}

URL Encoding Examples

Full Range v3 Position (ETH/USDC, 0.3% fee)

https://app.uniswap.org/positions/create
  ?currencyA=NATIVE
  &currencyB=0xA0b86991c6218b36c1d19D4a2e9Eb0cE3606eB48
  &chain=ethereum
  &fee={%22feeAmount%22:3000,%22tickSpacing%22:60,%22isDynamic%22:false}
  &priceRangeState={%22priceInverted%22:false,%22fullRange%22:true,%22minPrice%22:%22%22,%22maxPrice%22:%22%22,%22initialPrice%22:%22%22,%22inputMode%22:%22price%22}
  &step=1

Custom Range V3 Position (ETH/USDC on Base, ±10% range)

https://app.uniswap.org/positions/create
  ?currencyA=NATIVE
  &currencyB=0x833589fCD6eDb6E08f4c7C32D4f71b54bdA02913
  &chain=base
  &fee={%22feeAmount%22:3000,%22tickSpacing%22:60,%22isDynamic%22:false}
  &priceRangeState={%22priceInverted%22:false,%22fullRange%22:false,%22minPrice%22:%222800%22,%22maxPrice%22:%223600%22,%22initialPrice%22:%22%22,%22inputMode%22:%22price%22}
  &depositState={%22exactField%22:%22TOKEN0%22,%22exactAmounts%22:{%22TOKEN0%22:%221%22}}
  &step=1

Stablecoin Position (USDC/USDT, 0.01% fee, tight range)

https://app.uniswap.org/positions/create
  ?currencyA=0xA0b86991c6218b36c1d19D4a2e9Eb0cE3606eB48
  &currencyB=0xdAC17F958D2ee523a2206206994597C13D831ec7
  &chain=ethereum
  &fee={%22feeAmount%22:100,%22tickSpacing%22:1,%22isDynamic%22:false}
  &priceRangeState={%22priceInverted%22:false,%22fullRange%22:false,%22minPrice%22:%220.99%22,%22maxPrice%22:%221.01%22,%22initialPrice%22:%22%22,%22inputMode%22:%22price%22}
  &step=1