Uniswap Has Launched Its V3 Mainnet
Uniswap Has Launched Its V3 Mainnet
The decentralized finance protocol, Uniswap has announced that Uniswap Has Launched Its V3 Mainnet on Ethereum. People were waiting for months for the launch of Uniswap V3. Originally, Uniswap was launched in March of this year. On May 5 2021, the company wrote in their blog post that they are thrilled to announce that their Uniswap v3 has been deployed to the Ethereum mainnet. The V3 is the most powerful version of the protocol, according to the company. The new version of Uniswap v3 aims to provide:
- Concentrated Liquidity offering unprecedented capital efficiency for liquidity providers
- Better execution for traders
- Superior infrastructure at decentralized finance
- capital-efficient on-chain exchange
Moreover, the company also shares its audit reports for the core and periphery contracts alongside its announcement of v3 mainnet on Ethereum. According to the reports, Uniswap’s total valued locked (TVL) is nearly $7.16 billion. As a result, the latest improvements of Uniswap’s protocol will attract a broader user base. The Uniswap team also stated in a blog post that its latest version will launch layer-two protocol Optimistic Rollup. The layer-two protocol Optimistic Rollup will lower transaction costs after the latest version.
Uniswap V3 also brings another important feature of multi-tiered fees. Previously, Uniswap gave LPs 0.3% — 0.25% per transaction. Now, liquidity providers (LPs) can create pools at three fee levels of 0.05%, 0.30%, and 1% respectively. The more multi-tiered transaction fees may be added, subject to governance, according to the company.
In a nutshell, the multi-tiered transaction fees will reflect a trade’s perceived risk/reward. The several assets align themselves in specific fee tiers that will base on the risk for both swappers and liquidity providers.
Currently, Uniswap has a weekly volume of $10.07 billion and has a total of 56.4% decentralized exchange (DEX) market share. It is possible that with the launch of Uniswap’s V3, the market had been already priced in the positive catalyst.
Also, after 6 weeks of its launch, the company has also resolved the issues of bugs. However, the Uniswap v3 bug bounty has found no major issues. Notably, Uniswap v3 is a complex new protocol and we can’t guarantee all bugs have been found and resolved. Even though the company has claimed to resolve all the issues of bugs.
According to the developers’ point of view, they can begin building on Uniswap v3 from now. Additionally, the Uniswap Labs team will be available to answer integration-related questions for their developers and users in the Uniswap community Discord.
The new interface of v3 will alert you when a better exchange rate is available on the previous Uniswap (v2). The Uniswap analytics platform will track your performance of v3. Moreover, it will continue to review your v2 stats. Also, the new pool interface supports the creation of Uniswap v3 positions alongside fee tiers and liquidity ranges. Each position created by v3 is represented as an NFT. The position comes with a unique piece of on-chain generative art.
The company has also released its migration walkthrough guide. Uniswap has released a migration portal for Uniswap v2 and Sushiswap LPs. With the help of the migration portal, you can seamlessly migrate your assets over to v3. Due to concentrated liquidity, the migration portal requires LPs to specify a fee tier and price range for their allocated liquidity.
