Getting Started with Liquidity

• What is a liquidity pool?

  A liquidity pool is a pairing of tokens in a smart contract that is used for swapping on decentralized exchanges (DEX...

• What is a liquidity provider (LP) fee?

  A Liquidity Provider (LP) fee is applied to all swaps when using the Uniswap Protocol.   The LP fee is taken from the...

• What are fee tiers?

  A fee tier is the percentage of the liquidity provider fee that is applied to swaps in a liquidity pool.   Each provi...

• 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 liqui...

• How to convert a price to a tick that can be initialized

  Converting a price to a tick that can be initialized1 is done using the following formula:   To convert a price to a...

• Do I need to hold both tokens to provide liquidity using Uniswap v3 and v4?

  Uniswap v3 and v4 support adding liquidity with a single token when the position’s price range is outside the current...

• Why is liquidity position ownership represented by tokens or NFTs?

  Ownership of Uniswap liquidity is represented by UNI-V2 tokens (for Uniswap v2 liquidity) and NFTs (for Uniswap v3 an...

• Can I provide liquidity over the full price range?

  Anyone can add liquidity across the full price range of a token pair on Uniswap v2, v3, and v4.   Adding liquidity fo...

• What is Impermanent Loss?

  Impermanent loss (IL) is when the prices of tokens in a liquidity pool change from what they were when the liquidity ...

• What is a range order?

  A range order refers to adding single-sided liquidity with the intent of removing the liquidity after the position is...

• What is single-sided liquidity?

  Single-sided liquidity refers to liquidity that only holds one of the two tokens in a pool.   Single-sided liquidity ...

• What is the difference between removing liquidity as WETH and ETH?

  Ethereum (ETH) is the network token for the Ethereum Chain. In order to swap ETH as an ERC-20 token, it needs to be w...

• How do I change my token's logo or information on Uniswap interfaces?

  Uniswap Labs sources token information and token logos from CoinGecko.   To change your token information (i.e. websi...