If I go to https://app.uniswap.org/#/add/0xa0b86991c6218b36c1d19d4a2e9eb0ce3606eb48/0xc02aaa39b223fe8d0a0e5c4f27ead9083c756cc2/3000?chain=mainnet I can see liquidity details for USDC-DAI

It looks like this: enter image description here

As far as I know, Uniswap is an constant product AMM so the liquidity inside should reflect the price Based on the total value locked the price of ETH should be: 131.87m/91.43k which is 131000000.87/91000.43 and this is equal to 1439.55

What am I doing wrong, the correct price should be 2550.


1 Answer 1


You're mistaken, Uniswap v3 does not use the formula x*y=k for real amounts of assets. It's a concentrated liquidity AMM and uses a concentrated liquidity formula.

Read Uniswap v3 whitepaper. Specifically the formula 2.2 defines liquidity in v3. If you operate with virtual reserves of x and y then the relationship between price and liquidity (formulas 6.3 to 6.6) is the same as in v2. But virtual reserves x and y are not the same as the actual (real) token reserves in the pool, due to the concentrated liquidity feature.

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