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Uniswap v3: Upcoming May 5th New Features

In a blog announcement, Uniswap disclosed a number of explosive new improvements, as well as a rollout date of May 5 for Ethereum and May 12 for its throughput-boosting layer-2 solution Optimism.

The DeFi exchange is stating that the new update will make Uniswap the most flexible and efficient automated market maker.

Uniswap v3 introduces more features:

  • Concentrated liquidity, individual’s positions are aggregated together into a single pool, forming one combined curve for users to trade against
  • Multiple fee tiers, allowing LPs to be appropriately compensated for taking on varying degrees of risk.

These features make Uniswap v3 the most flexible and efficient AMM ever designed:

  • LPs can provide liquidity with up to 4000x capital efficiency relative to Uniswap v2, earning higher returns on their capital.
  • Capital efficiency paves the way for low-slippage trade execution that can surpass both centralized exchanges and stablecoin-focused AMMs
  • LPs can significantly increase their exposure to preferred assets and reduce their downside risk.
  • LPs can sell one asset for another by adding liquidity to a price range entirely above or below the market price, approximating a fee-earning limit order that executes along a smooth curve.

These groundbreaking design improvements will make the gas cost on Uniswap v3 on Ethereum mainnet a slight cheaper than them where on v2. Transactions made on the Optimism deployment will likely be significantly cheaper. 

If you want more detailed information and technical overview please read the Uniswap v3 Core whitepaper and the Uniswap v3 Core smart contracts.

 

 

 

 

Image: wiredsmartio

*Disclaimer: Fyggex, does not give any guidance, advice or recommendations to neither invest or not in any available cryptocurrency directly or indirectly via any trading platform, exchange or provider. Our sole purpose is to make you aware of the related real or potential risks and opportunities so that you can make your own research prior to any financial decisions you may want to take. Past performance and position are not a guarantee of risk-free future returns.

Sources

https://uniswap.org/blog/uniswap-v3/

https://levelup.gitconnected.com/whats-new-in-uniswap-v3-a04a8f2673bb

https://boxmining.com/uniswap-v3/

https://medium.com/coinmonks/uniswap-v3-is-coming-what-does-it-mean-for-uni-462228430244

https://coinmarketcap.com/alexandria/article/uniswap-v3-guide-the-apex-dex-reclaims-its-edge