This glossary covers the terms introduced in the Uniswap v3 whitepaper introduction section. These terms are important to understand how Uniswap v3 works and how Automated Market Makers function for Liquidity Providers.
In a previous tutorial, we learned how to use Sommelier’s Pairings service swap from ETH to our pair of tokens in the Automated Market Maker liquidity pools on Uniswap v3. Thanks to new improvements made towards the user experience in the Pairing’s platform, it’s easy for first time Liquidity Providers to add liquidity on Uniswap v3.
One common misconception when first starting using DeFi or decentralized services is the notion that in order to get financial gains with cryptocurrencies one must become an investor or a trader. There’s actually another choice: to become a Liquidity Provider.