The fees are steep, but Uniswap v3 sees more traffic on launch day than v2 does in the first month.

Spread the love

 282 Interactions,  6 today

Several users have expressed dissatisfaction with the new edition, including its higher gas fees.

Hayden Adams, the founder of Uniswap, announced that the launch day of Uniswap’s v3 version was more popular in terms of volume than its predecessor.

Adams called the launch of Uniswap v3 the day before a resounding success in a tweet on May 6th. He observed that in its first 24 hours of operation, v3 had handled more than twice the amount that v2 had in the first month.

Adams claims that by dividing Uniswap’s volume by total value locked, or TVL, the platform is more efficient than its v2 form. According to Adams, v2 saw $1.1 billion in volume and $8.1 billion in TVL on the first day with a 13 percent efficiency ratio, while v3 saw $150 million in volume and $300 million in TVL for a 50 percent efficiency ratio.

 

At the time of writing, the Uniswap dashboard was reporting a daily volume of $214 million with a TVL of $350 million for v3. Over the same period the version 2 stats of $1.1 billion in daily volume and of course it’s built up around $8 billion in TVL over the time it’s been operational.

RECOMMENDED READ:  By extending to Polygon, 1inch Network expands the liquidity outlets.

Gas guzzler?

Not all have been as enamored with the latest iteration of the world’s most popular DEX, with users complaining about the costs associated with using v3. One respondent to Adams stated:

“Even more expensive to make mistakes now. Tried to migrate my UNI/ETH liquidity to V3, failed and paid 108.09 usd worth of gas.”

Dragonfly Capital Managing Partner, Haseeb Qureshi, also asserted that v3 is more expensive to use than its predecessor, noting an example transaction in which he attempted to swap 3 Ether for DAI.

“Looks like Uniswap v3 is more gas expensive than v2, roughly as expected. Specifically, it’s about 28% more expensive for single-hop transactions it looks like. For larger transactions that cross multiple ticks/buckets, the gas costs should be slightly larger.”

Others complained of the cost incurred by creating a pool and adding liquidity on the new platform, with one claiming to have paid 0.2 ETH worth roughly $750.

DeFiPrime commented on the complexities of using the new interface via its Telegram feed, stating:

“Add liquidity UI now requires a master’s degree to figure out how to price your liquidity position. It’s a huge step backward from the simplicity we had in v2.”

Fees seem to be the main disadvantage of using the network, but this can be said of most DeFi projects on Ethereum in recent months. To add layer-two scaling to v3, Uniswap must wait for the release of Optimism.

RECOMMENDED READ:  ccording to a JPMorgan strategist, the Bitcoin price drop is far from done.

Cointelegraph announced on March 29 that Uniswap’s daily fee production had surpassed Bitcoin’s by $1.7 million.

Leave a Reply

Contact Us