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When I add a position with uniswap v3, there is a slippage tolerance setting. To my understanding, slippage occurs during a swap. But it's not clear what slippage means when adding liquidity. I thought that when adding or removing liquidity (via creating/removing a v3 position), liquidity is simply added or removed to the pool, so there should be no slippage during that operation.

How can slippage apply to adding/removing a v3 position (or range order) ?

slippage

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Adding or removing Liquidity changes the amount of currency & that directly affects the main famous AMM equation XY=K So Uniswapv3 has to worry about the resulting slippage when adjusting his like sliding window moving https://uniswap.org/blog/uniswap-v3/ https://github.com/Uniswap/uniswap-v3-core/ enter image description here

Yes things r little bit complicated in Uniswapv3 to keep the slippage within the desired user range, but the point regarding ur Q is that the amount of liquid currency directly affects the balance & the prices

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  • "changes the amount of currency"... it does not happen in any ration, the liquidity can only be added in the same ration already defined, so that K remains the same. In summary, you did not answer the question! Commented Jan 23, 2022 at 3:42
  • Before getting into what I learned thru those 6-7months when I wrote this answer, I can tell u I mean in order for k to remain the same the prices will change which may affect ur slippage even if to a better situation. In v3 from the added image you can simply see that changing L affects the formula. (I will get back to you with more details later, I honestly just woke up to get this 1st notify)
    – ShAr
    Commented Jan 24, 2022 at 6:16

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