Uniswap — the most popular decentralized exchange. Updating the protocol to version 3 will help it further strengthen its leadership position. In addition, the long-awaited release of the third version of the Uniswap decentralized exchange should take place soon. Uniswap v3 promises enhanced new features and revenue generating capabilities with its launch. Against this backdrop, the next DeFi rally could take place. As Uniswap is at the center of the decentralized finance industry. According to CoinGecko, Uniswap’s trading volume over the past 24 hours amounted to over $ 2 billion. It makes it one of the largest not only among decentralized exchanges, but also in the cryptocurrency segment as a whole.
Benefits of Uniswap v3
In preparing Uniswap v3, the developers aimed to create “the most flexible and efficient market maker that has ever existed”.
The update will enable users to better manage liquidity, and risk pairs will become more profitable for liquidity providers. For this, three key changes have been integrated:
– Concentrated liquidity is an opportunity for liquidity providers to choose for themselves in which price range to allocate capital;
– Commission levels (Uniswap v3 adds commission levels for each pair: 0.05%, 0.3% and 1%. Thus, if there is increased volatility in a trading pair, then the reward should be commensurate);
– Simplified and cheaper oracles. These are services that provide information from the outside world: decentralized applications, other blockchains, marketplaces, cloud providers, corporate systems, etc. They also check the terms of a smart contract.
The future of DeFi projects
DeFi projects are at the top of news feeds, inflating fees on the Ethereum network to record highs and are being talked about as a future alternative to the modern banking system. Some DeFi in a few months broke out of oblivion into the TOP 50 cryptocurrencies in terms of capitalization.
Last year, large institutional investors began to show interest in cryptocurrencies.
Thus, in recent years, the market for decentralized financial services has been rapidly growing and developing, expanding the list of supported assets and enriching with additional functions.
Separate expectations of market participants associated with the fact that the launch of Uniswap v3 will provoke a new rise in the space of decentralized finance. In particular, the project developers note that concentrated liquidity will allow the implementation of new mining models. With the help of liquidity using the assets issued on their platform. Projects such as Alchemix and Pendle are already emerging. Allowing tokens to trade for the future earnings of Uniswap liquidity providers, opening up an entirely new segment of the DeFi space.
Most likely, in 2021, projects on new blockchains promising for DeFi will only gain popularity. So, on the eve of the launch of the new version of DEX, the number of searches for the word “uniswap” approached the records of the DeFi boom.