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### tl; dr
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### tl; dr
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* 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.
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Uniswap v3 introduced:
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* it also introduced multiple fee tiers , allowing LPs to be appropriately compensated for taking on varying degrees of risk.
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* better gas refunds due to it's flashloan style architecture.
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* **concentrated liquidity**: replacing fungible ERC20 liquidity positions with non-fungible ERC-721 liquidity positions.
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* 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
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* individual LPs get granular control over what price ranges their capital is allocated to.
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* individual positions are aggregated together into a single pool, forming one combined curve for users to trade against.
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* **multiple fee tiers**: allowing LPs to be appropriately compensated for taking on varying degrees of risk.
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<br>
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<br>
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