At its core, a DEX V3 protocol introduces "Concentrated Liquidity." In previous versions (V2), liquidity was spread evenly across an infinite price range (from ∞infinity
: Built on the Uniswap V3 architecture, it introduces a modular incentive system where multiple protocols can layer rewards on a single liquidity pool. Dex V3
Several major DeFi projects have adopted or expanded on the V3 architecture: At its core, a DEX V3 protocol introduces
: Utilizes a "Meta DEX v3" strategy that integrates token launches and trading into one economic system. The Role of Liquidity Managers At its core
: Unlike V2, where LP tokens were identical (ERC-20), V3 positions are unique and often represented as NFTs because every LP might have a different price range. Key Implementations and Features