Uniswap v3 will launch on May 5th, releasing more specifications and launch dates for its anticipated version 3 upgrade, saying that it will run with 4000x capital efficiency so let’s read more in our altcoin news today.
After months of announcements and teasers, Uniswap unveiled the specifications for its upgrade, adding that the mainnet launch was planned for May 5. The world’s leading DEX stated that it will be the most flexible market that was ever created. But the scaling solutions to reduce transaction fees won’t be included in May and will come later:
“We are targeting an L1 Ethereum mainnet launch on May 5, with an L2 deployment on Optimism set to follow shortly after.
🦄 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”
Uniswap v3 is touted as the most significant improvement as concentrated liquidity which aggregates the positions of individual liquidity providers into one pool which is used for the price curve. With the liquidity providers being able to supply liquidity with more than 4000x capital efficiency relative to Uniswap v2, earning higher returns on their capital is highly likely:
“In Uniswap v3, LP’s can concentrate their capital within custom price ranges, providing greater amounts of liquidity at desired prices.”
The enhancement paved the way for low slippage trade execution while allowing the yield farmers to increase exposure to preferred assets as well as reducing the downside risks. Also, the custom price curves will mean that the liquidity positions are not fungible anymore and not represented as ERC20 tokens in the core protocol but represented by NFT instead. Another improvement will come to the price oracles that were tweaked for easier and cheaper integration over the past versions of the protocol.
However, the non-whale users will be relieved of the high transaction fees which are about $40 per transaction according to the Etherscan data:
“The gas cost of v3 swaps on Ethereum mainnet is slightly cheaper than v2.”
The UNI token, on the other hand, hit 8.5% on the day and dropped back to $31 right after according to CoinGecko. The v3 improvement seems to be quite beneficial for the bagholders which are easily reflected in market sentiment for UNI.
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