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### Liquidity Price Graph for WETH/USDT In this lesson, we’ll examine a real-world example of a liquidity price graph using the WETH/USDT pool on Uniswap. We'll observe how the price of WETH fluctuates with respect to USDT as we explore this graph. If you would like to follow along, you can go to app.uniswap.org and then click on "Explore". The WETH/USDT pool is used because WETH is token zero and USDT is token one. In our previous lesson we learned that to the left of the current price, the liquidity is in token Y, and to the right, the liquidity is in token X. In this example, we will say that token zero is token X and token one is token Y. Therefore token X is WETH and token Y is USDT. As we move our cursor along the bottom of the graph we can see the price of WETH in USDT terms changes. Specifically we can see that the price of 1 WETH increases as we move the cursor to the right along the graph. We can also observe that there is a unique shape to the liquidity price graph. This is because the graph represents the liquidity at each price, calculated by stacking up all of the positions that overlap with that price. If we zoom in at the current price, we can see that liquidity is partially in USDT and partially in WETH. To the left of the current price all of the liquidity is in USDT. Remember in this pool, USDT is token Y (or token one). To the right of the current price the liquidity is all in WETH, which is token X (or token zero) in this pool. In summary, what we’ve learned is that as we move the cursor from left to right, the price of WETH in terms of USDT increases. Additionally, we’ve observed that, to the left of the current price, all liquidity is in token Y, in this case USDT. While to the right of the current price, the liquidity is all in token X, which is WETH.
A visual guide to interpreting the liquidity price graph - This lesson dives into the depths of a liquidity price graph, explaining how to understand the information presented and how to analyze it to make informed decisions. You will learn to interpret how liquidity changes based on token price and understand how to utilize this information in your own trading.
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Course Overview
About the course
Concentrated liquidity and derive its equations
Uniswap V3 math
How to calculate the spot price of tokens
Single and multi position swapping
Factory contract architecture
How to calculate liquidity requirements
Uniswap V3 fee algorithm
Flash loans
TWAP price oracle
Smart Contract Auditor
$100,000 - $200,000 (avg. salary)
Blockchain Financial Analyst
$100,000 - $150,000 (avg. salary)
DeFi Developer
$75,000 - $200,000 (avg. salary)
Smart Contract Engineer
$100,000 - $150,000 (avg. salary)
Web3 developer
$60,000 - $150,000 (avg. salary)
Web3 Developer Relations
$85,000 - $125,000 (avg. salary)
Last updated on May 15, 2025
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Course Overview
About the course
Concentrated liquidity and derive its equations
Uniswap V3 math
How to calculate the spot price of tokens
Single and multi position swapping
Factory contract architecture
How to calculate liquidity requirements
Uniswap V3 fee algorithm
Flash loans
TWAP price oracle
Smart Contract Auditor
$100,000 - $200,000 (avg. salary)
Blockchain Financial Analyst
$100,000 - $150,000 (avg. salary)
DeFi Developer
$75,000 - $200,000 (avg. salary)
Smart Contract Engineer
$100,000 - $150,000 (avg. salary)
Web3 developer
$60,000 - $150,000 (avg. salary)
Web3 Developer Relations
$85,000 - $125,000 (avg. salary)
Last updated on May 15, 2025