Am I missing something here with V2 Vs V3 and “collect fees”

Am I missing something here with V2 Vs V3 and “collect fees”

I’ve dabbled in Defi a few times on and off so pretty novice but I decided to try some liquidity pools on Uniswap for the first time.

1. I made a Pool
2. It’s on the ETH network and paid about $11 in gas
3. It’s been about 3 days
4. would like to roll those collected fees back into the same or different pool.

Obviously hasn’t accrued much (-$1) but wanted to see how it works before investing much more time/coin. Looks like I have to pay gas fees again (about $15 when I looked) to collect my -$1? And the collected fees from my understanding and just sitting there waiting and doing nothing.

Now I looked at V2 and it seems that V2 automatically takes my fees and places them back into the pool. Which immediately sounds both simpler and cheaper.

Is V3 designed more for whales and V2 is where I should take my shrimp money? Which is disappointing because I liked reading that V3 was for people that wanted to be more hands on.

Also fwiw yes I will probably try a different network than ETH due to cost. I just went with ETH because I had some in the account already. But I still think the main question I have applies to any network.

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3 thoughts on “Am I missing something here with V2 Vs V3 and “collect fees””

  1. V3 is for concentrating liquidity in a range. Sadly this is a byproduct of that design choice. Yep, you have to manually reinvest. Yep, you need to do ~10k usd pool for it to be worth the time.

  2. The fees are automatically placed into the position.

    If you have 1 eth and 1500 USD in an LP and someone buys 0.5 ETH and then someone sells 0.5 eth you would end up with 1.001 eth and 1501 USD in your position (these aren’t real numbers, but I think you get the principle of the idea).


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