- Uniswap outperformed after launching v3.
- Migrating v2 liquidity not required.
- V3 is integrated into the platform for decentralizing exchange (DEX).
Uniswap(UNI), the native token major decentralized exchange, has outperformed its competitors after it launched much-anticipated v3.
The Exchange operates by a single entity and uses a new type of trading model called automated liquidity protocol, Uniswap. Uniswap is completely open-source, for free it allows the users to list tokens on an exchange
Uniswap’s many competitors recorded strong increases in this period, led by 1INCH’s 32%. With 28% Blackpearl token(BPLC) follows it, and other tokens of popular decentralized exchanges are green too. Some of them are SUSHI (7%), CRV (5%), ox (5%), and more others.
Moreover, the “unprecedented” capital efficiency for liquidity providers (LPs), improved execution for traders, and “superior” infrastructure for DeFi, offered by the new version, as per the Ethereum-based Uniswap.
Furthermore, As a proof of concept for automated market makers (AMMs) Uniswap v1 launched in November 2018, and this followed by v2 in May 2020. Although, this version provides over USD 135bn in trading volume in less than a year, they said in their blog post.
Layer 1(L1) Ethereum mainnet launch of v3 which is now out, with Layer 2 (L2) launch on optimism “set to follow”.
Uniswap Launched ‘v3’
- Concentrated Liquidity
- Non-Fungible Liquidity
- Capital Efficiency
- Range Orders
- Three fee tries per pair
- Advanced oracles
Even more, the additional details related to the LP position now being NFTs, as well as possibilities yet to come,noted by Hayden Adams founder of Uniswap.
Hence more, migrating v2 liquidity not required, the Uniswap v2 protocol will remain in use until the Ethereum network exists. But the team needs the advantage of v3 to draw a majority of liquidity and trading volume away from v2.
The v3 integrated into the platform for decentralized exchange (DEX) trading already announced by the CEO of Shapeshift.
The co-founder of Framework Ventures, Vance Spencer called this launch the beginning of “the paleozoic era of Defi capital efficiency”, referring to a time in Earth’s history marked by massive changes.
DeFi aggregator Furucombo Chief Operating Officer Blake Ho
“While an exciting development for the DeFi space, it will be interesting to see what Uniswap v3’s user interface updates look like”
According to Kadan Stadelmann, Chief Technology Officer of Komodo (KMD), “changes look like they will make it more difficult for the average Uniswap liquidity provider but easier for professional market makers. Will other DEXes adopt a similar model to become more like Uniswap v3, or will they choose to stick with their existing models? That’s what a lot of people are wondering at the moment.”
Hence more, the v3 seems to be more gas expensive than v2, said Dragonfly Capital, the managing partner. Deploying a new pool is expensive, and “if you are complaining about the gas costs of deploying a v3 pool you are not going to make it”, argued the research partner at crypto-asset investment firm Paradigm.
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