An Early Look at Uniswap v3 LP Activity

For a detailed overview of how Uniswap v3 works and how its main feature of custom liquidity ranges differs from existing AMMs, see this research piece. 

Uniswap v3’s primary novel feature of custom liquidity ranges changed the DEX design space by connecting AMMs with traditional limit order books. In short, if AMMs are a passive market-making strategy, ready to provide liquidity at an infinite range (unless that liquidity is moved by some predetermined mechanism), and a limit order is the inverse, where orders match at some discrete point, Uniswap v3 can be used to approximate those strategies and every strategy in between.