The emerging decentralized finance (DeFi) space is launching new products and features every week, so even those currently at the top of their game can’t sit on their laurels, or they’ll likely be the ones eliminated tomorrow, including Uniswap.
On May 5, the Uniswap team officially deployed the V3 version of the smart contract to the ethereum mainnet and will go live tomorrow. uniswap upgraded to version 2 last May and is now entering the V3 era after a year. uniswap V3 version of the protocol is expected to provide users with more control over the liquidity it provides and offer more upside for riskier transactions. upside.
DeFi is a multi-billion dollar industry that replaces traditional financial institutions such as banks and brokerage firms through automated code (i.e., smart contracts) built on a blockchain network. Through DeFi, people can obtain loans, earn interest, exchange tokens, and place bets on the future value of tokens. Ether’s market cap is already approaching $400 billion, and more than $77 billion of cryptocurrency is invested in the Ether-based DeFi protocol, showing how important the industry may be to the growth of the blockchain (and its price).
Uniswap is the most popular ethereum-based decentralized exchange (DEX) that enables people to exchange tokens running through the ethereum network. Uniswap itself is an automated market maker (AMM), which means it relies on algorithms to price assets rather than buy and sell order books. Those on the platform provide liquidity by locking in the tokens they own; others can borrow tokens and pay interest to the liquidity provider.
A variety of “ERC20” tokens are available on Uniswap, including stablecoins pegged to the U.S. dollar (such as Tether and USDC) and governance tokens (such as Maker and Aave).
According to CoinMarketCap, Unsiwap has seen nearly $1.9 billion in trading volume in the past 24 hours. And according to cryptofees data, the size of fees generated on Uniswap has surpassed that of the Bitcoin network in the past 24 hours, reaching $5.92 million. As Uniswap wrote in a March 23 blog post, while the platform’s 24-hour trading volume is far from that of centralized exchanges Coinan ($68.8 billion) or Huobi ($20.7 billion), there is no denying that Uniswap is “a critical infrastructure for decentralized finance.
The goal of Uniswap v3 is to make it “the most flexible and efficient AMM ever.”
This new version of DEX highlights three new features.
The first is centralized liquidity. In a March press release, Uniswap wrote: “Automated market makers have historically required all [liquidity providers] to share the same strategy and deposit funds across the entire price curve from 0 to infinity. In doing so, they have not taken into account individual expectations of future price activity. The result of centralized liquidity is that traders do not have to invest as much capital to achieve the same results.
In addition, Uniswap adds more fee levels so that traders can determine their level of risk when trading volatile assets, which can easily change price between trade initiation and execution.
Finally, Uniswap V3 introduces an “easier and cheaper” prognosticator to ensure that prices are up-to-date, thus reducing the risk of being corrupted by bad data.
These are advanced trading features that make little sense to the uninitiated, but Uniswap says they can be more rewarding for the experienced DeFi trader.
Uniswap will need to do this as it becomes more competitive with other DEXs. Earlier this year, Kyber released version 3.0 of its unlicensed exchange program. The release also aims to reduce the risk of traders trading volatile assets. SushiSwap, which cloned Uniswap, also released plans last winter to attract more liquidity through interoperability with other DeFi protocols (so that more lending could be offered) and to launch its own lending platform.
In addition, last year the powerful centralized exchange Binance integrated to create the Coin Smartchain (BSC) to support DeFi applications, including DEX. The BSC-based PancakeSwap cut into Uniswap’s market share.
With such fierce competition, future product iterations are expected to accelerate forward, and by the time you get a handle on the new features of Uniswap V3, Uniswap v4 may be coming soon.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/uniswap-v3-contract-has-completed-deployment-on-the-ethernet-mainnet-and-will-go-live-tomorrow/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.