Difference between revisions of "Uniswap"

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== Uniswap Version 3 ==
 
== Uniswap Version 3 ==
  
In March 2021, Uniswap announced on its blog that Version 3 of the Uniswap protocol will launch on May 5, 2021, with a later second-layer upgrade implemented on top of it around mid-May. The upgrades will seek to improve the efficiency by which Uniswap's platform [[scales]] to address its growing user base and to lower the number of fees from Ethereum (or "gas fees") that it incurs to effectively zero, or as close to it as possible. Uniswap V3 will also change Uniswap's pricing model: V3 will offer liquidity providers (LPs) 3 fee tiers: 0.05 percent, 0.30 percent, and 1.00 percent. These tiers were designed to make it easier for LPs to profit off of more volatile digital assets, as well as assets that are more thinly-traded than average. The upgrade also makes the [[digital tokens]] that LPs receive less fungible, and ends the practice of re-investing funds acquired by fees into Uniswap's liquidity pools. Uniswap has bankrolled $2 billion for future developments.<ref>{{cite web|url=https://uniswap.org/blog/uniswap-v3/|name=Introducing Uniswap V3|org=Uniswap blog|date=March 24, 2021}}</ref><ref>{{cite web|url=https://www.theblockcrypto.com/post/99100/uniswap-v3-capital-efficiency-details-dex-ethereum|name=4000x more capital efficient: Uniswap team reveals details for v3|org=The Block|date=March 24, 2021}}</ref><ref>{{cite web|url=https://www.coindesk.com/uniswap-launches-version-3-in-bid-to-stay-defis-top-dog|name=Uniswap Unveils Version 3 in Bid to Stay DeFi’s Top Dog|org=CoinDesk|date=March 24, 2021}}</ref>
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On May 5, 2021 Uniswap launched its Version 3.<ref>{{cite web|url=https://www.coindesk.com/uniswap-v3-live|name=Uniswap v3 Is Live as DEX Aims to Become Ethereum’s Indisputable No. 1|org=CoinDesk|date=May 6, 2021}}</ref><ref>{{cite web|url=https://uniswap.org/blog/launch-uniswap-v3/|name=Uniswap V3 Mainnet Launch!|org=Uniswap|date=May 6, 2021}}</ref> The upgrade was first announced the previous March.<ref>{{cite web|url=https://uniswap.org/blog/uniswap-v3/|name=Introducing Uniswap V3|org=Uniswap blog|date=March 24, 2021}}</ref> 
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According to Uniswap's blog posts, the upgrades improve the platform's scaling to meet the growth of its user base and lowers the number of fees from Ethereum (or "gas fees") effectively to zero, or as close as possible. Uniswap V3 also changes Uniswap's pricing model: V3 offers liquidity providers (LPs) 3 fee tiers: 0.05 percent, 0.30 percent, and 1.00 percent. These tiers were designed to make it easier for LPs to profit from more volatile digital assets as well as assets that are more thinly-traded than average. The upgrade also makes the [[digital tokens]] that LPs receive less fungible and ends the practice of re-investing funds acquired by fees into Uniswap's liquidity pools. Uniswap has reserved $2 billion to use as grants for developers.<ref>{{cite web|url=https://uniswap.org/blog/uniswap-v3/|name=Introducing Uniswap V3|org=Uniswap blog|date=March 24, 2021}}</ref><ref>{{cite web|url=https://www.theblockcrypto.com/post/99100/uniswap-v3-capital-efficiency-details-dex-ethereum|name=4000x more capital efficient: Uniswap team reveals details for v3|org=The Block|date=March 24, 2021}}</ref><ref>{{cite web|url=https://www.coindesk.com/uniswap-launches-version-3-in-bid-to-stay-defis-top-dog|name=Uniswap Unveils Version 3 in Bid to Stay DeFi’s Top Dog|org=CoinDesk|date=March 24, 2021}}</ref>
  
 
=== Concentrated Liquidity ===
 
=== Concentrated Liquidity ===
  
According to the announcement, Version 3 will include a number of new features including "concentrated liquidity," a feature that allows liquidity providers connected to Uniswap's ecosystem to set minimum and maximum caps on how much of their holdings are added or removed from any given liquidity pool, giving liquidity providers more control over the price ranges in which their capital is used. According to Uniswap's announcement, this will help Uniswap run more efficiently by making the protocol more capital-efficient.<ref>{{cite web|url=https://uniswap.org/blog/uniswap-v3/|name=Introducing Uniswap V3|org=Uniswap blog|date=March 24, 2021}}</ref><ref>{{cite web|url=https://www.theblockcrypto.com/post/99100/uniswap-v3-capital-efficiency-details-dex-ethereum|name=4000x more capital efficient: Uniswap team reveals details for v3|org=The Block|date=March 24, 2021}}</ref><ref>{{cite web|url=https://www.coindesk.com/uniswap-launches-version-3-in-bid-to-stay-defis-top-dog|name=Uniswap Unveils Version 3 in Bid to Stay DeFi’s Top Dog|org=CoinDesk|date=March 24, 2021}}</ref>
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Version 3 includes a new feature on the platform, "concentrated liquidity," which lets LPs set minimums and maximums on how much of their holdings are added or removed from any given liquidity pool, giving LPs more control over the price ranges in which their deposits are used. According to Uniswap's announcement, this makes the protocol more capital-efficient.<ref>{{cite web|url=https://uniswap.org/blog/uniswap-v3/|name=Introducing Uniswap V3|org=Uniswap blog|date=March 24, 2021}}</ref><ref>{{cite web|url=https://www.theblockcrypto.com/post/99100/uniswap-v3-capital-efficiency-details-dex-ethereum|name=4000x more capital efficient: Uniswap team reveals details for v3|org=The Block|date=March 24, 2021}}</ref><ref>{{cite web|url=https://www.coindesk.com/uniswap-launches-version-3-in-bid-to-stay-defis-top-dog|name=Uniswap Unveils Version 3 in Bid to Stay DeFi’s Top Dog|org=CoinDesk|date=March 24, 2021}}</ref>
  
 
== References ==
 
== References ==

Revision as of 16:01, 6 May 2021

Uniswap
Uniswap logo.jpg
Headquarters New York, New York
Key People Hayden Adams
Products Decentralized Exchange
Twitter @UniswapProtocol
Website Homepage
Blog Blog

Uniswap is a decentralized trading platform (or exchange, "DEX") for ERC-20 tokens. As a DEX, Uniswap does not have the central limit order book that is a common feature in cryptocurrency trading platforms and electronic futures and stock exchanges.

Overview

According to Ethereum development company ConsenSys, with 1,625 DEX superusers - users who trade on DEXs more than 100 times per month, Uniswap dominated the superuser space in the second quarter of 2020.[1]

Uniswap dominated trading volume with a 41 percent marketshare among DEXs in July 2020, when DEX trading volume grew 170 percent.[2]

On September 16, 2020, Uniswap launched the UNI governance token, minting 1 billion coins to be publicly released over the next four years. Uniswap announced it on its blog, saying that 60 percent of all coins would be distributed to users, while 21.51 percent would be reserved for team members and future employees, 17.8 percent would be reserved for investors, and 0.69 percent would be reserved for advisors. The blog post said UNI "officially enshrines Uniswap as publicly-owned and self-sustainable infrastructure while continuing to carefully protect its indestructible and autonomous qualities." It also said that Uniswap would launch an initial liquidity mining program September 18, 2020 at 12:00 AM UTC.[3][4]

According to Dune Analytics, a DEX market analytics company, in January 2021 the total trading volume on DEXs reached an all-time high over $50 billion in digital assets traded. Uniswap accounted for 48.8 percent of total transactions.[5]

All trades made on Uniswap Versions 1 and 2 (or "Uniswap V1/V2 core") include a 0.03 percent fee.[6]

As of March 2021, Uniswap's daily volume accounted for 20-25 percent of transactions made on Ethereum per day; it also accounted for 60 percent of volume on all DEX platforms.[7]

Uniswap Version 3

On May 5, 2021 Uniswap launched its Version 3.[8][9] The upgrade was first announced the previous March.[10]

According to Uniswap's blog posts, the upgrades improve the platform's scaling to meet the growth of its user base and lowers the number of fees from Ethereum (or "gas fees") effectively to zero, or as close as possible. Uniswap V3 also changes Uniswap's pricing model: V3 offers liquidity providers (LPs) 3 fee tiers: 0.05 percent, 0.30 percent, and 1.00 percent. These tiers were designed to make it easier for LPs to profit from more volatile digital assets as well as assets that are more thinly-traded than average. The upgrade also makes the digital tokens that LPs receive less fungible and ends the practice of re-investing funds acquired by fees into Uniswap's liquidity pools. Uniswap has reserved $2 billion to use as grants for developers.[11][12][13]

Concentrated Liquidity

Version 3 includes a new feature on the platform, "concentrated liquidity," which lets LPs set minimums and maximums on how much of their holdings are added or removed from any given liquidity pool, giving LPs more control over the price ranges in which their deposits are used. According to Uniswap's announcement, this makes the protocol more capital-efficient.[14][15][16]

References