Ticks in V2?

[0xJepsen]

Question about this part of the documentation. As far as my understanding goes there are no ticks in V2, which has me a little perplexed on this part of the docs (in the V2 section) mentioning them. Is this correct? Could someone clarify my understanding?

docs/docs/contracts/v2/concepts/01-protocol-overview/03-smart-contracts.md

Line 62 in ca96a9f

To ameliorate rounding errors and increase the theoretical minimum tick size for liquidity provision, pairs burn the first [MINIMUM_LIQUIDITY](../../reference/smart-contracts/pair#minimum_liquidity) pool tokens. For the vast majority of pairs, this will represent a trivial value. The burning happens automatically during the first liquidity provision, after which point the [totalSupply](../../reference/smart-contracts/pair-erc-20#totalsupply) is forevermore bounded.

[Florian-S-A-W]

Hi @0xJepsen
This refers to the general trading term Tick Size and has nothing to do with what Uniswap calls "Ticks" in the V3 Protocol.
While the AMM model Uniswap uses is continuous, every Token has a discrete minimum unit. Lets look at ETH and its minimum unit Wei which is 10^(-18) ETH. You can't provide anything smaller than 1 Wei in liquidity to a Pair.
Let's imagine you deploy a Token with only 6 decimals like USDC with a very low supply. That could make one minimum unit of it worth a significant value, lets say 1000 USD. If you deploy a Pair with 10 units of this token, the minimum price ratio change you could achieve would be around 10% while the Pair has a liquidity of over 20.000 USD.
Obviously this is an exaggerated example but the same concept is true for any coin. By enforcing a minimum liquidity of 1000 minimum units of the Token, the initial Tick Size i.e. minimum price ratio change is always below 0.1%.

[0xJepsen]

That makes sense, i think the way it is worded in the documentation is confusing since V3 has a very specific definition of a tick struct. Might be worth rewording to make more clear to users.