Editing Uniswap (section)

== Concepts ==

=== Liquidity Pools ===

=== Swaps ===

=== Constant Product Formula<ref name=":0" /><ref>Uniswap. (2020). ''UniswapV2Factory.sol''. GitHub. <nowiki>https://github.com/Uniswap/v2-core/tree/master/contracts</nowiki></ref> ===
<code>x * y = k</code>

=== Concentrated Liquidity (CL) ===
As long as the pairing of ETH and DAI stay within a range ($1500-2500), User Red who invested much less than User Blue ($1200 vs. $10,000) can still earn the same trading fees (see Figure CL). 
[[File:Uniswap concentrated-liquidity-example.png|thumb|Figure CL: An example of how Uniswap V3's concentrated liquidity concept works.<ref>''UNISWAP V3 - New Era Of AMMs? Architecture Explained''. (2021, March 23). Finematics. Retrieved November 8, 2023, from <nowiki>https://finematics.com/uniswap-v3-explained/</nowiki></ref>]]

=== Active Liquidity ===

=== Range Limit Orders ===