How to Provide or Migrate Liquidity on Uniswap Version 3

There have been some changes made on Uniswap since changing from version 2 to version 3, which can be frustrating to figure out.

The main differences on Uniswap v3, is you have to select your preferred liquidity provider fee and liquidity range.

Here are the steps required to provide liquidity on Uniswap Version 3

Step 1

Head over to https://uniswap.org and select the “Use Uniswap” button in the top right corner of the screen.

Step 2

Select “Pool” from the menu

Step 3

Click on “New Position”

Step 4

Select a pair of tokens that you would like to supply liquidity for from the drop down menus.

Step 5

Select your preferred liquidity fee.

Step 6

Add the price range that you are willing to supply liquidity.

For this example, we set the range roughly 100 USD either side of the current price ie 2533.78. The price moved as we completed the form, so our range is from 2430.9 USD to 2628.1 USD.

Providing the liquidity range selected is the same either side of the current price, then the liquidity provided will be a 50:50 split. ie in this example the ETH and USDT value in USD will be the same.

Step 7

Connect your Metamask wallet to Uniswap and enter your deposit amounts – entering one value will cause the other value to autocomplete based on the current market prices.

To supply standard 50:50 liquidity, make sure you have similar USD values of each token in your Metamask wallet.

Follow the Metamask instructions and accept the fees.

Tip

A useful tip is to switch the pair toggle button if necessary to view the current market prices of either token.

Taking the pair UNI/ETH as an example, you can select either the ETH/UNI or UNI/ETH values, as shown below

WARNING 

Be very careful if you wish to provide liquidity for rebase tokens such as Ampleforth AMPL because they are not supported on Uniswap V3. Some people have deposited funds but cannot remove them from the liquidity pool. Both Uniswap and Ampleforth do not seem concerned about people losing their funds in this way and neither have done anything at the time of writing to address this issue.