Uni v3 Farm

We know that Uniswap V3 greatly improves the capital utilization rate for liquidity provision, which means that the same amount of funds can earn higher transaction fees in liquidity pools. However, Uniswap V3 has a more complex mechanism compared to the traditional LP mechanism, and users need to take active actions, such as setting price ranges, when providing liquidity on Uniswap V3. As a result, most yield farming platforms do not support users utilizing their funds for yield farming on Uniswap V3.

zkFox offers a novel approach, different from the unified LP management found in V2 liquidity pools. We allow users to open individual positions on our platform. This means that each user can design their own liquidity provision price range for the funds they obtain through leveraged borrowing. As a result, each user receives a separate liquidity NFT. This isolates the impact of user behaviors from one another, allowing users to have more proactive strategies without being affected by the strategies of other users.

The liquidation process for Uniswap V3 is similar to that of Uniswap V2, as it is also determined based on the overall value of the liquidity provided to decide whether to trigger liquidation. We will not repeat the description here since it has been previously discussed.