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* uniswap v3 allows LPs to provide concentrated liquidity within smaller price ranges. * uniswap v3 allows LPs to provide concentrated liquidity within smaller price ranges.
* jit liquidity is a form of liquidity provision where an LP mints and burns a concentrated position immediately before and after a swap. * jit liquidity is a form of liquidity provision where an LP mints and burns a concentrated position immediately before and after a swap.
* because provision has significant costs, it's usually only used against very large swaps * because provision has significant costs, it's usually only used against very large swaps
##### on mev
* jit liquidity is provided by MEV searchers who scan the mempool for substantial pending trades, adding and withdrawing an LP position within the same block. sophisticated searchers can add and remove concentrated liquidity on sandwich trades.
* using uniswap v3’s concentrated liquidity, the position’s range can be defined to match the trade in order to poach an amplified portion of the trading fees.
* hit liquidity avoids exposure to impermanent loss by its very nature since it is added and removed within the same block.
* jit lps face competition in mev auction market - the price improvement provided by jit liquidity should be capped by twice the fee rate of the pool that jit occurs in. * jit lps face competition in mev auction market - the price improvement provided by jit liquidity should be capped by twice the fee rate of the pool that jit occurs in.
* sophisticated searchers can add and remove concentrated liquidity on sandwich trades.
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