Kaiko Acquires Amberdata in Landmark Digital Asset Data Consolidation.
Kaiko Uniswap V3 Methodology.
Uniswap V3 Methodology
This methodology covers the method used for collecting data as part of Kaiko’s Level 1 & Level 2 Data subscriptions. Uniswap V3 introduced concentrated liquidity, allowing liquidity providers to allocate capital within specific price ranges rather than across the entire curve. This improves capital efficiency but adds complexity when modeling liquidity and token reserves across all possible price levels. This methodology explains how Kaiko reconstructs liquidity and token reserves for any Uniswap V3 pool.
Kaiko operates full archive Ethereum nodes and an in-house indexer to collect all mint, burn, and swap events at block granularity. Using these events, Kaiko identifies the tick ranges impacted by each liquidity change. For each tick range, Kaiko calculates cumulative liquidity by adding or subtracting the delta L from each mint or burn event.
Using Uniswap V3’s constant product formula adapted for concentrated liquidity, Kaiko then derives the real quantities of token X and token Y locked in every tick range. The output is a block-by-block snapshot showing liquidity distribution, token reserves, and price levels. This data enables market depth analysis and slippage estimation for any Uniswap V3 pool.