{
  "$schema": "https://degreesofsatoshi.com/encyclopedia/schemas/article-v1.json",
  "schemaVersion": "1.0.0",
  "id": "uniswap-v2-vs-v3",
  "canonical": "https://degreesofsatoshi.com/encyclopedia/uniswap-v2-vs-v3/",
  "collection": "defi",
  "title": "Uniswap v2 and v3: full-range versus concentrated liquidity",
  "description": "Compare Uniswap v2 full-range liquidity with v3 concentrated positions, including capital placement, fee accounting and time-weighted price oracles.",
  "aliases": [],
  "dates": {
    "published": "2026-10-02",
    "modified": "2026-10-02",
    "verified": "2026-10-02T18:15:18.493Z",
    "dataAsOf": "2026-10-02"
  },
  "authorship": {
    "publisher": "Degrees of Satoshi editorial project",
    "process": "AI-assisted research and drafting with a separate automated source-verification pass; no external expert or named human review is implied."
  },
  "quickAnswer": {
    "text": "Uniswap v2 pools place liquidity across the full constant-product price range. Uniswap v3 lets liquidity providers choose price ranges, concentrating capital where it can trade. That changes inventory, position management and fee opportunities; it does not guarantee higher net returns for every provider.",
    "claimId": "uniswap-v2-vs-v3-quick-answer",
    "sourceIds": [
      "uniswap-v2",
      "uniswap-v3"
    ]
  },
  "keyFacts": [
    {
      "label": "V2",
      "value": "Liquidity follows the full-range constant-product reserve relationship.",
      "sourceIds": [
        "uniswap-v2"
      ],
      "id": "v2",
      "claimId": "uniswap-v2-vs-v3-fact-v2"
    },
    {
      "label": "V3",
      "value": "Positions specify bounded price ranges and can become inactive outside them.",
      "sourceIds": [
        "uniswap-v3"
      ],
      "id": "v3",
      "claimId": "uniswap-v2-vs-v3-fact-v3"
    },
    {
      "label": "Oracle",
      "value": "The versions use different cumulative-price accounting methods.",
      "sourceIds": [
        "uniswap-v2",
        "uniswap-v3"
      ],
      "id": "oracle",
      "claimId": "uniswap-v2-vs-v3-fact-oracle"
    }
  ],
  "prerequisites": [
    "constant-product-pools",
    "concentrated-liquidity"
  ],
  "sections": [
    {
      "id": "range",
      "heading": "Choose where the position offers liquidity",
      "sourceIds": [
        "uniswap-v3"
      ],
      "paragraphs": [
        "A v3 provider can put capital in a narrow interval around a price. While active, that capital can support more liquidity per deposited amount than the same capital spread across a full range.",
        "If price exits the interval, the position becomes concentrated in one asset and stops providing active liquidity there. Repositioning changes exposure and can incur costs."
      ]
    },
    {
      "id": "fees",
      "heading": "More concentrated fees come with different exposure",
      "sourceIds": [
        "uniswap-v2",
        "uniswap-v3"
      ],
      "paragraphs": [
        "V2 and v3 have different fee and position-accounting arrangements. V3 positions can differ by range and fee tier, so two providers in the same asset pair need not earn the same return.",
        "Compare fees with inventory changes, gas and rebalancing costs. Gross fee earnings do not equal profit relative to simply holding the original assets."
      ]
    },
    {
      "id": "version",
      "heading": "Do not extend one version’s behavior to every pool",
      "sourceIds": [
        "uniswap-v2",
        "uniswap-v3"
      ],
      "paragraphs": [
        "The cited white papers describe v2 and v3 designs. Later versions and integrations can add other mechanisms. A brand name or token pair does not identify the exact pool behavior.",
        "Use the pool address, deployment version, fee configuration and position range when reproducing a calculation."
      ]
    }
  ],
  "faq": [
    {
      "question": "Does v3 remove impermanent loss?",
      "answer": "No. Concentrated liquidity changes where and how inventory changes occur. It does not eliminate divergence from the value of holding the original assets.",
      "sourceIds": [
        "uniswap-v3"
      ]
    }
  ],
  "claims": [
    {
      "id": "uniswap-v2-vs-v3-quick-answer",
      "articleSlug": "uniswap-v2-vs-v3",
      "statement": "Uniswap v2 pools place liquidity across the full constant-product price range. Uniswap v3 lets liquidity providers choose price ranges, concentrating capital where it can trade. That changes inventory, position management and fee opportunities; it does not guarantee higher net returns for every provider.",
      "sourceIds": [
        "source-9d6f5c70415da83e",
        "source-a0860b156550d3eb"
      ],
      "sourceLocators": [
        {
          "sourceId": "source-9d6f5c70415da83e",
          "locator": "Price oracle; Liquidity; Fees"
        },
        {
          "sourceId": "source-a0860b156550d3eb",
          "locator": "Concentrated Liquidity; Oracle"
        }
      ],
      "scope": {
        "collection": "defi",
        "dataAsOf": "2026-10-02",
        "blockHeight": null
      },
      "qualification": "",
      "evidenceStatus": "documented",
      "verification": {
        "status": "verified",
        "method": "independent automated source review",
        "checkedAt": "2026-10-02T18:15:18.493Z",
        "reviewer": "automated independent verification — DeFi expansion reviewer",
        "notes": [
          "Reopened v2 and v3 white papers; visually inspected v3 page2 concentrated-liquidity inventory and page3 fee/position architecture. Out-of-range positions stop earning active fees and become one asset.",
          "Read v3 pages3–4 arithmetic/geometric oracle contrast. No fixed current fee tier or higher-return promise is inferred from concentrated capital."
        ]
      }
    },
    {
      "id": "uniswap-v2-vs-v3-fact-v2",
      "articleSlug": "uniswap-v2-vs-v3",
      "statement": "V2: Liquidity follows the full-range constant-product reserve relationship.",
      "sourceIds": [
        "source-9d6f5c70415da83e"
      ],
      "sourceLocators": [
        {
          "sourceId": "source-9d6f5c70415da83e",
          "locator": "Price oracle; Liquidity; Fees"
        }
      ],
      "scope": {
        "collection": "defi",
        "dataAsOf": "2026-10-02",
        "blockHeight": null
      },
      "qualification": "",
      "evidenceStatus": "documented",
      "verification": {
        "status": "verified",
        "method": "independent automated source review",
        "checkedAt": "2026-10-02T18:15:18.493Z",
        "reviewer": "automated independent verification — DeFi expansion reviewer",
        "notes": [
          "Reopened v2 and v3 white papers; visually inspected v3 page2 concentrated-liquidity inventory and page3 fee/position architecture. Out-of-range positions stop earning active fees and become one asset.",
          "Read v3 pages3–4 arithmetic/geometric oracle contrast. No fixed current fee tier or higher-return promise is inferred from concentrated capital."
        ]
      }
    },
    {
      "id": "uniswap-v2-vs-v3-fact-v3",
      "articleSlug": "uniswap-v2-vs-v3",
      "statement": "V3: Positions specify bounded price ranges and can become inactive outside them.",
      "sourceIds": [
        "source-a0860b156550d3eb"
      ],
      "sourceLocators": [
        {
          "sourceId": "source-a0860b156550d3eb",
          "locator": "Concentrated Liquidity; Oracle"
        }
      ],
      "scope": {
        "collection": "defi",
        "dataAsOf": "2026-10-02",
        "blockHeight": null
      },
      "qualification": "",
      "evidenceStatus": "documented",
      "verification": {
        "status": "verified",
        "method": "independent automated source review",
        "checkedAt": "2026-10-02T18:15:18.493Z",
        "reviewer": "automated independent verification — DeFi expansion reviewer",
        "notes": [
          "Reopened v2 and v3 white papers; visually inspected v3 page2 concentrated-liquidity inventory and page3 fee/position architecture. Out-of-range positions stop earning active fees and become one asset.",
          "Read v3 pages3–4 arithmetic/geometric oracle contrast. No fixed current fee tier or higher-return promise is inferred from concentrated capital."
        ]
      }
    },
    {
      "id": "uniswap-v2-vs-v3-fact-oracle",
      "articleSlug": "uniswap-v2-vs-v3",
      "statement": "Oracle: The versions use different cumulative-price accounting methods.",
      "sourceIds": [
        "source-9d6f5c70415da83e",
        "source-a0860b156550d3eb"
      ],
      "sourceLocators": [
        {
          "sourceId": "source-9d6f5c70415da83e",
          "locator": "Price oracle; Liquidity; Fees"
        },
        {
          "sourceId": "source-a0860b156550d3eb",
          "locator": "Concentrated Liquidity; Oracle"
        }
      ],
      "scope": {
        "collection": "defi",
        "dataAsOf": "2026-10-02",
        "blockHeight": null
      },
      "qualification": "",
      "evidenceStatus": "documented",
      "verification": {
        "status": "verified",
        "method": "independent automated source review",
        "checkedAt": "2026-10-02T18:15:18.493Z",
        "reviewer": "automated independent verification — DeFi expansion reviewer",
        "notes": [
          "Reopened v2 and v3 white papers; visually inspected v3 page2 concentrated-liquidity inventory and page3 fee/position architecture. Out-of-range positions stop earning active fees and become one asset.",
          "Read v3 pages3–4 arithmetic/geometric oracle contrast. No fixed current fee tier or higher-return promise is inferred from concentrated capital."
        ]
      }
    }
  ],
  "sources": [
    {
      "id": "uniswap-v2",
      "label": "Uniswap v2 whitepaper",
      "publisher": "Uniswap",
      "url": "https://app.uniswap.org/whitepaper.pdf",
      "locator": "Price oracle; Liquidity; Fees",
      "note": "Full-range constant-product inventory and cumulative-price oracle design.",
      "version": "Uniswap v2 whitepaper, March 2020",
      "checkedAt": "2026-10-02T17:03:45.008Z",
      "contentSha256": "32f8efd517767d8effb908e322df5ed1fe746ad0a3e642d49596cf2de1a6d21d",
      "recordId": "source-9d6f5c70415da83e"
    },
    {
      "id": "uniswap-v3",
      "label": "Uniswap v3 whitepaper",
      "publisher": "Uniswap",
      "url": "https://app.uniswap.org/whitepaper-v3.pdf",
      "locator": "Concentrated Liquidity; Oracle",
      "note": "Range-based positions and oracle time accumulation.",
      "version": "Uniswap v3 whitepaper, March 2021",
      "checkedAt": "2026-10-02T17:03:45.213Z",
      "contentSha256": "1be05d1134f677dfbce9afa7392a2c200c000f3db74fb8d228e3636a2b624494",
      "recordId": "source-a0860b156550d3eb"
    }
  ],
  "related": {
    "articles": [
      "liquidity-provider-positions",
      "impermanent-loss",
      "uniswap-v4-hooks"
    ],
    "dossiers": [],
    "wallets": []
  },
  "revisionHistory": [
    {
      "date": "2026-10-02",
      "kind": "published",
      "summary": "First publication after primary-source research and independent automated verification."
    }
  ],
  "citation": "Degrees of Satoshi editorial project. “Uniswap v2 and v3: full-range versus concentrated liquidity.” Published 2026-10-02; updated 2026-10-02. https://degreesofsatoshi.com/encyclopedia/uniswap-v2-vs-v3/"
}