Uniswap V3 vis a vis Badger and Digg

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.


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That is what I took away from it as well and what I have seen others on Twitter say. Badger could create a vault that actively manages the lp so that depositors will get maximum capital efficiency without having to worry about adjusting their lp curves or the gas involved. It sounds like this will actually work better on L2 anyways. Not having erc20 lp tokens for uniswap could break a lot of composability but it also opens up whole new possibilities of defi that weren’t possible before. I’m really excited to see what people build on top of this.

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