Uniswap v3 and v4 support adding liquidity with a single token when the position’s price range is outside the current token price.
Uniswap v2 does not allow adding liquidity with a single token. Liquidity providers must hold both tokens and contribute an equal amount of each in order to add liquidity.
Uniswap v3 and v4 allow providers to add liquidity without holding both tokens, but only when the position's price range is outside the current price.
Liquidity positions with a price range that is outside the current price are known as out of range and single-sided.
Here is an example of a position that is out of range:
- Current market price: 3727.08
- Position’s price range: 2702.7 to 2858.36
When the position’s price range does not include the current price, providers can add liquidity using only one token.
Here is an example of a position that is in range:
- Current market price: 3732.51
- Position’s price range: 3662.83 to 3800.89
When the position's price range includes the current price, liquidity providers must hold both tokens to add liquidity.