Uniswap V3: A Strategic Maneuver or a Display of Inexperience?

Hey guys!

Our team has recently conducted a deep analysis of Uniswap V3 protocol and its biggest players. Some of the findings were eye-opening to say the least.

Consider this intriguing case: a mysterious LP boldly ventured beyond the norm. Over 250 days ago, on November 30th, 2022, an audacious move unfolded. With over 500K USDC supplied, they opened a position that defied the boundaries of the price range. What's more astonishing? This position remains open till this very moment.


A puzzle emerges: what drives someone to park half a million dollars on Uniswap V3 for a span of over 8 months, all while reaping no fees in return?

Amidst the enigma, a plausible explanation arises. Could this enigmatic LP be orchestrating a unique symphony, using a slender Uniswap position as a crafty disguise for a limit order? Imagine this: when the USDC/ETH price finally crosses this position's price range, the entire USDC corpus seamlessly converts into ETH. A stroke of genius indeed! By sidestepping the standard 0.05% transaction fee, our mysterious virtuoso stands to pocket a fraction of the transaction fees contributed by traders who tap into their USDC liquidity.

What are your thoughts on this behavior? Any other explanations?

Want to find out more about Uniswap V3 liquidity provision – read the full research here

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2 thoughts on “Uniswap V3: A Strategic Maneuver or a Display of Inexperience?”

  1. I see this quite a bit in random pairs. Not normally that high of value, but I’ve always assumed it was a DEX limit order. I can’t assume the fees earned will cover the gas cost. Maybe it’s a way to hide capital gains? Claim it as income instead?

  2. Am I reading it right? You’re trying it evaluate a position in ETH/WBTC pool in USD terms? It’s totally useless IMO.

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