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### tl; dr
* Uniswap v3 introduce the concept of "concentrated liquidity", replacing fungible ERC20 liquidity positions with non-fungible ERC-721 liquidity positions. Individual LPs get granular control over what price ranges their capital is allocated to. Individual positions are aggregated together into a single pool, forming one combined curve for users to trade against.
* it also introduced multiple fee tiers , allowing LPs to be appropriately compensated for taking on varying degrees of risk.
* better gas refunds due to it's flashloan style architecture.
* the profitability of a liquidity provider (LP) has been called into question: estimations that about half of LPs would have been off holding assets directly rather than providing liquidity
Uniswap v3 introduced:
* **concentrated liquidity**: replacing fungible ERC20 liquidity positions with non-fungible ERC-721 liquidity positions.
* individual LPs get granular control over what price ranges their capital is allocated to.
* individual positions are aggregated together into a single pool, forming one combined curve for users to trade against.
* **multiple fee tiers**: allowing LPs to be appropriately compensated for taking on varying degrees of risk.
<br>