When questioned about when liquidity mining on the Uniswap V3. 

Hayden Adams speaking at the consensus expressed, one very interesting thing about liquidity mining in V3 is that you can be more efficient with your capital. If you were to do liquidity mining and do far less liquidity mining because you can incentivize far more efficient capital. And, basically you could be more efficient with your liquidity mining. In terms of when, I think it is going to be very soon.

There is sort of lot of speculation when we first announced and today it is much more complex. And, liquidity is not all identical. There was also some open ended questions and people asked if it would be possible. And, the answer is:  Yes.  It is completely possible and it is doing well.

You know Uniswap is basically a protocol for trading cryptocurrencies. And, it kind of makes usage of the decentralized nature of Ethereum in a unique way and makes use of smart contracts in a unique way.

It was kind of one of the first applications introduced this idea of automated market making, which essentially lowers the barrier of entry to participate in the market making to the point where basically anyone can do it.

Traditionally, professional market makers do a vast majority of, 100% of all market making. They kind of – ability for anyone to spin out a liquid market in an asset is somewhat new, and pretty exciting. The kind of thing that people point to is directly the problems with automated market making was that they were largely inefficient.

In V2 for example, may be 25% of the liquidity existed when only buying when it fell below 10 dollars or something. And, here you have just far more capital that can be concentrated, much closer to the market price. The way that it plays out is that it gives much better prices for traders. And, it gives liquidity providers a lot, basically makes them to be more efficient.  Take on to more opinionated positions. So, they can kind of adjust their exposures. As I warn that ultimately plays out in them either they are earning higher returns or just taking on positions that they would prefer.

Adams stated about DeFi, “Not only will it be kind of one by one, replacing all the TradFi [traditional finance] stuff, but I think that beyond that we might be discovering some new elements as well. Things that kind of simply weren’t possible in traditional financial systems might be made possible in DeFi.”

In the prior liquidity mining run, users who deposited funds in various Uniswap pools were rewarded with UNI tokens.