Uniswap out of range positions

48. [Easy] Out of Range Positions

Bounty description

"Visualize the proportion of active positions on Uniswap V3 that have been out of range vs. in range daily since the launch of Uniswap v3."

Method

Uniswap V3 position data since inception was obtained from Flipside crypto's Uniswap V3 positions and Uniswap V3 poool stats tables. The following steps were then taken to obtain the daily number of in-range positions:

  • Classifying a position as inactive when the most recent entry in the positions table has the 'is_active' equal to False. If inactive, the position is no longer considered in the analysis unless a new position is added at a later date.
  • Removing positions if they supply no liquidity (the liquidity_adjusted field is zero).
  • Classifying positions as out of range if the daily price is greater than the position upper price, or less than the position's lower price.

Out of range positions over time

Considering all positions across every Uniswap V3 pool, there is a significant number of positions where the daily price falls outside of the position's price range:

  • Since the inception of Uniswap V3, 42% of all positions have been out of range on an average each day.
  • The proportion of positions out of range exhibits moderate variability, ranging from 36% and 49% on 80% of days.

This does not account for the size of positions, and therefore the amount of liquidity out of range at any point in time.

Comparing out of range positions and liquidity

Considering the two largest pools by their total value locked, we find that most liquidity falls outside the position price range on any given day:

  • USDC-ETH .3%: 46% of positions are out of range, while 90% of all liquidity is out of range on average.
  • BTC-ETH .3%: 25% of positions are out of range, while 74% of all liquidity is out of range on average.

This result is likely to be present for most pools where prices have been variable, but not for other pools such as stable coin pairs. It could also reflect a high concentration of liquidity over a small number of positions.