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.
🦄 Today we are thrilled to present a detailed overview of Uniswap v3, the most flexible and capital efficient AMM ever designed!
🏃 Mainnet launch is scheduled for May 5, with a scalable Optimism L2 deployment set to follow soon afterhttps://t.co/NTekDxWVA8
— Uniswap Labs 🦄 (@Uniswap) March 23, 2021
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.
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