Uniswap V3 will be available on the Ethereum mainnet in May.

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A surge in participation in decentralised finance and decentralised exchanges has heightened competitiveness among ventures, especially those aiming to boost liquidity offerings. Uniswap Labs has given a preview of the new Uniswap Protocol v3. This new functionality, according to a press release shared with AMBCrypto, aims to “increase capital productivity and trade execution quality.” The new protocol is set to go live on the Ethereum mainnet on May 5, 2021.

Previously, liquidity providers will hold money as a fund for an unlimited variety of prices; but, Uniswap v3 provides “concentrated liquidity,” which gives individual liquidity providers leverage over the price levels at which their capital is committed. In comparison to v2, liquidity suppliers will have liquidity of “up to 4000x capital efficiency.”

Other functions, such as various fee rates and specialised oracles, are claimed to be “easier and less expensive” to implement.

Hayden Adams, founder of Uniswap Labs, addressed the launch, stating that the protocol acts as a “essential infrastructure” for decentralised finance. He continued, saying:

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“Uniswap v3 now paves the way for automated market makers to outcompete both stablecoin-focused and traditional exchanges on trade execution quality.”

Recently, analysts at Intotheblock stated:

Curve, YieldSpace, Balancer, and DODO, among other ventures in the DeFi market, have been attempting to increase liquidity in decentralised exchanges. Although Curve was able to conduct stablecoin-to-stablecoin transactions, Balancer, a protocol for programmable liquidity, recently implemented a key feature for its V2 protocol that maximises the returns of liquidity providers.

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