Uniswap announced their V3 details today, and it’s not just optimistic roll ups. They’re introducing some sort of Concentrated Liquidity thing that I guess does away with the x*y=k thing. I’m guessing that with these changes, those of us that are LP providers on uniswap will probably need to migrate to V3, right?
I’m still trying to digest what the changes mean, but so far, it seems like optimized returns might require active management of liquidity. Does anyone else get the same read? If that’s the case, that might present another strategy opportunity for the Badger dao. It sounds like LP tokens will be a thing of the past with V3, so Instead of directly providing LP with Uniswap and then staking with the DAO, maybe the approach will have to be flipped? Maybe the DAO would need new vaults specificially for providing LP for uniswap V3 such that we provide the tokens individually to the DAO in exchange for LP, and then the DAO itself provides the LP in V3 using some sort of optimized strategy?
Does any of what I’m thinking make any sense at all? I mean, I’m probably not understanding the implications of the new liquidity NFTs, so feel free to tell me how I’m wrong.
Either way, with the launch of V3 being a little over a month away, I feel like it’s a good idea to get a dialog going to figure out what the DAO ultimately wants to do with all the liquidity that’s in the Uniswap ecosystem.