uniswap-v3-guide

To choose a Uniswap V3 fee tier, match the tier percentage (0.01%, 0.05%, 0.3%, 1%) with your token pair's volatility. Higher volatility pairs generally warrant higher fee tiers to compensate for increased impermanent loss risk and price exit frequency.

Concentrated liquidity in Uniswap V3 allows you to allocate capital to custom price ranges rather than the entire curve. This increases capital efficiency and fee accrual but requires active management to prevent positions from becoming inactive.

Set Uniswap V3 price ranges by selecting wide, medium, or narrow bounds based on your management capacity. Narrow ranges maximize capital efficiency but require frequent rebalancing when price exits the range, while wide ranges reduce maintenance.

Yes, impermanent loss in Uniswap V3 scales with range width. Narrower price ranges amplify impermanent loss risk when the market price diverges, because your position becomes fully concentrated in a single asset much faster than wider ranges.

You should rebalance your Uniswap V3 liquidity position when the market price exits your configured range, making your capital inactive. Factor in realistic gas costs and L2 network considerations before adjusting bounds or collecting accrued fees.

Wide Uniswap V3 price ranges offer lower capital efficiency but require less frequent rebalancing and reduce impermanent loss. Narrow ranges maximize fee accrual through high capital efficiency but demand active management and incur higher gas costs.