The third version of Uni Swap was launched; What does this mean?admin
The third version of Uniswap (Uniswap V3) was launched a few hours ago. Performance optimization, more control over fees, and more options for access to liquidity pools are some of the changes that have been made to this version.
While new products and capabilities are being unveiled every week in the fledgling Decentralized Finance (DeFi) arena, Uniswap, the world’s most popular decentralized exchange, has not given up and launched its third edition hours ago.
The decentralized exchange, which was upgraded to the second version in May last year, released the third version of its protocol today. Uniswap promised that in this version, users will have more control over liquidity and more benefits for riskier transactions.
DeFi is a multibillion-dollar industry that is replacing traditional financial institutions such as banks and brokerage firms with automated codes (ie, smart contracts) created on the Blockchain network. DeFi provides facilities such as borrowing, making interest on deposits, exchanging tokens, and investing in increasing the price of tokens in the future.
Ethereum (Ethereum) has a market value of $ 391 billion, and more than $ 77 billion in Cryptocurrencies have been invested in Ethereum-based DeFi protocols. This shows how important the DeFi segment is to the growth of the Blockchain and possibly its value.
Uniswap is the most popular Ethereum-based decentralized exchange (DEX) that allows people to exchange tokens over the Ethereum network. Uniswap is also an automated marketer (AMM); That is, it relies on algorithms to price assets instead of buying and selling orders.
Those who are on this platform provide liquidity by locking their tokens, and others can borrow these tokens and make a profit to the liquidity providers.
The ERC-20 tokens available at Uniswap Exchange include dollar-denominated stable coins such as the USDT and USDC, as well as government tokens such as the Maker and Aave. It is worth noting that government tokens facilitate voting on other protocols.
CoinMarketCap data show that the volume of transactions in Unicap in the last 24 hours has been approximately $ 1.9 billion. This number is not close to the volume of instant transactions in centralized exchanges such as Binance or Huobi, with $ 68.8 billion and $ 20.7 billion in daily transactions, respectively. But as Uniswap wrote in a blog post on March 23, this volume of transactions will definitely make the exchange a “vital infrastructure for decentralized finance.”
The goal of the third version of Uniswap is to make this exchange “the most flexible and efficient automated marketer”. Uniswap has highlighted three new features in the third version.
The first feature is “more control over liquidity.” “Uni Soup said in a press release in March:
Automated marketers have historically required everyone to have the same strategy and capital invested throughout the price curve from zero to infinity. By doing so, these marketers have failed to meet individual expectations of future price movements.
The result of more control over liquidity is that traders do not have to deposit the same capital to achieve the result.
In addition, Uniswap offers more fee lines so that traders can determine their level of risk when trading volatile assets where it is possible to change the price from the moment the transaction starts until it is executed.
Finally, Uniswap offers “easier and cheaper” oracles that ensure the price is up-to-date and reduce the risk of damage from misinformation.
These are advanced trading capabilities that make little sense to novices, but can be more rewarding for experienced DeFi traders, according to Uniswap.
As competition from other decentralized exchanges intensifies, Uniswap will need these capabilities. Earlier this year, Kyber released plans for the third version of its unlicensed exchange, one of its goals was to reduce risk for traders dealing with volatile assets.
The Sushiswap exchange, which is actually a copy of Uniswap, last winter announced plans to raise more liquidity (to increase lending power) by interacting with other DeFi protocols as well as launching its own lending platform.
Also last year, the powerful centralized Binance exchange launched Binance Smart China (BSC) to support DeFi software, such as decentralized exchange. The PancakeSwap exchange, created on China’s Binance Smart, has since taken over part of the Uniswap market.
With such high competition, as soon as you master the new features of Uniswap, the fourth version will probably arrive.
The third version of Uni Swap was launched; What does this mean?