The Defiant outlined a worked example showing how a Uniswap v3 position behaves after price moves outside its selected range. Using an ETH/USDC position, the piece tracks token balances, fee accrual and a simple holding benchmark to compare outcomes over time. The main takeaway is that opening a new price range after the original one goes out of range does not wipe the slate clean on performance. Cumulative returns still need to be measured across the full life of the strategy rather than from the moment a fresh range is created. The article frames the issue as a practical accounting question for liquidity providers trying to understand how concentrated liquidity changes portfolio composition and reported returns.
The Defiant published a market analysis on what happens when a Uniswap v3 position moves out of range.
An ETH/USDC example tracks the position over time
The article uses an ETH/USDC worked example to follow token balances, fees and a holding benchmark.
Opening a new range does not reset cumulative returns
Its conclusion is that creating a new range after the original position falls out of range does not reset cumulative performance. Returns still need to be assessed across the full history of the position and the strategy.
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