'What's the point of adding liquidity minimum wtih negative ticks
Why would someone call mint() and burn() liquidity on uniswap v3 with negative lower and/or upper ticks? I saw a few people who did this while exploring some datasets.
Solution 1:[1]
Negative tick means prices less than 1; positive ticks prices more than 1, and tick value of 0 means price exactly equal to 1.
The Uniswap v3 whitepaper has an equation (Eq. 6.1) that defines the relation between tick i and price at that tick p(i):
? (?) = 1.0001 ^ ?
In Uniswap, the price is defined as the relation between x and y (the virtual amounts of tokens in the pool): P = y/x. If there are more x than y in the pool, then the price less than 1.0. From the equation 6.1, i-th power of 1.0001 is less than 1.0 only if i is negative.
Sources
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Source: Stack Overflow
| Solution | Source |
|---|---|
| Solution 1 | kfx |