Uniswap V3, Financial Engineering, Stochastic Process, Pricing, Martingales.
fee income is positively correlated with the liquidity we provide. That is, ϕ(H,L)=daily total fee*liq/generalized_total_liq ∗365 Here, the total fee is the fee collection rate, which can be calculated based on trading volume multiplied by the pool’s fee ratio. The liquidity can be obtained by