What is a tick when providing liquidity?

Ticks are units of measurement that are used to define specific price ranges. A tick is the smallest area where liquidity can be placed.

Basis points, known as bps or "bips" is another term used to show the percentage change in the price of a pool. A single tick and a single bip are interchangeable. Both are 0.01% or 0.0001 in decimal form.

Each fee tier has its own tick spacing. The tick spacing helps the pool keep track of liquidity.

The pool fee value is the solidity value of the fee tier percentage

The decimal value of a bip is 1/10000th. So, if you multiply the fee tier percentage by 10,000 you will get the pool fee value. The pool fee value is what the contract uses.

You can also use (1/Pool fee value) to get the percentage.

Tick-spacing multiplier Fee tier % multiplier Pool fee value Fee (bps)
1 100 * 0.01 * 10000 100 1
4 200 * 0.02 * 10000 10000

2
6 200 * 0.03 * 10000 10000

3
8 200 * 0.04 * 10000 10000

4
10 200 * 0.05 * 10000 500 5
60 200 * 0.3 * 10000 3000 30
200 200 * 1 * 10000 10000

100

 

Note: Solidity does not support percentages or decimals.


Uniswap v3 pools have a tick range from a minimum of -887272 to a maximum of 887272. Ticks used for positions in upper and lower ranges must be evenly divisible by the tick spacing.


Ticks will also convert to a price. Every pool has two prices, in value of token0 and token1. You can find the math for this here.


Learn more about ticks:

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