The most famous DeFi DEX, Uniswap, will launch a new version that will be available in May, where it offers several improvements and updates to improve capital efficiency and continue to be the most important decentralized exchange in the DeFi ecosystem.
In a publication This Tuesday, Uniswap developers announced the upcoming launch of Uniswap V3, the upcoming protocol upgrade that will make Uniswap the most flexible and efficient AMM ever designed.
The launch of this new version is planned to occur on May 5th at the blockchain de Ethereum, although it will be deployed on several testnets such as Ropsten, Rinkeby, Kovan, and Görli in the coming days. Running on testnets will allow developers to evaluate the behavior of Uniswap V3 and experiment with the protocol before its official launch on mainnet.
With this new version, the Uniswap Labs team seeks to make Uniswap the protocol DeFi more efficient and reliable decentralized ecosystems. As explained by the developers, V3 will allow liquidity providers (LPs) to provide the same depth of liquidity as in V2, but with custom price ranges where much less capital is risked. Also, as explained by the developers, Hayden Adams, founder of Uniswap, the vision is for LPs to be able to use their saved capital more efficiently to generate more returns and profits. Adams explains that the saved capital can be invested in different assets, deposited elsewhere in DeFi, or used to increase exposure within the specified price range to earn more fees and revenue.
Uniswap V3 introduces two new innovative features: Concentrated Liquidity and Multiple Fee Tiers, which will enable LPs to earn higher returns on their capital.
It may interest you: 1inch Becomes the Most Affordable and Accessible DeFi DEX
The evolution of Uniswap
Since the launch of its first version in 2018, Uniswap has been presented as a type of decentralized exchange where users and participants can pool assets in shared market-making strategies. Despite its revolutionary concept, the developers of this protocol continued to innovate in the DeFi space, convinced of creating an innovative product capable of generating great returns for users and investors.
This vision motivated the developers to introduce the second version of the protocol, Uniswap V2 in May 2020, where they introduced new functionalities and optimizations to further encourage the adoption of automated market makers (AMMs). Now, a year after this innovation, Uniswap is preparing for its third version; one that offers LPs up to 4000x higher capital efficiency compared to Uniswap v2, helping Uniswap users and stakers earn higher returns on their capital.
Outperforming its rivals in DeFi
The announcement of the third version of Uniswap comes just days after 1inch also announced the launch of a new aggregator, to optimize its gas fees, and make its services the most affordable and accessible in the DeFi ecosystem. 1inch announced last week the launch of 1inch Aggregation V3, to optimize gas consumption and surpass the services of the popular Uniswap, in terms of transaction commission costs.
Also, the Uniswap upgrade, which will be launched on the Ethereum mainnet in May, comes as the blockchain's developers are announcing new scalability improvements, such as the integration of Optimistic Rollups, and the possible activation of EIP-1559 in July, which seeks to optimize the commission system and reduce transaction fees to balance the network.
Security and projection against imitations
In its post, Uniswap Labs introduced the terms of a license called Business Source License 1.1, which will allow developers to curb copies and imitations of their protocol for up to two years, at which point the protocol will become GPL-licensed in perpetuity.
The developers are also offering a bug bounty program, where developers and white-collar hackers can participate to find bugs or vulnerabilities over the next 30 days. The reward will be up to $500.000 for critical bugs. Uniswap V3 has several full audits conducted by the companies: Trail of Bits, ABDK, and by Samczsun. However, since it is an extremely complex protocol, the developers are enabling the bug bounty program to catch any bugs that have slipped through the cracks in previous audits.
New highs with the arrival of Uniswap V3
At press time, the value of UNI, Uniswap's native token, hit a new all-time high above $35,8UNI's market cap exceeds $15.790 billion.
This DEX continues to be the most used in the DeFi ecosystem, and in the last 7 days it has moved value for more than 6,8 billion of dollars, while the daily volume exceeds $1,06 billion. Finally, DappRadar shows that Uniswap handles a liquidity of 5,16 billion dollars to date.
Continue reading: Uniswap and Synthetix, the only highly secure decentralized exchanges
