A great thread on how Uniswap V3 positions create reflexivity due to balancing.-When concentrated liquidity positions flip fully to one asset when they go out of range LPs will rebalance.-If prices drop then they sell the volatile token, which leads to further price drops.-Conversely, when prices pump and LPs are fully in stablecoins they will buy the volatile token sending prices even higher.


𝕏/@shaundadevens •