Roughly 28 months ago, the decentralized exchange (dex) Uniswap version one (v1) was released and then in May 2020, version two was launched with new features. The dex is by far the largest decentralized trading platform among its competitors, as the exchange swapped $7.1 billion during the last seven days. On March 23, Uniswap launched version three, which features new elements like concentrated liquidity, advanced oracles, and multiple fee tiers.
Developers Reveal Uniswap v3
When the cryptocurrency space was still young back in the early days, decentralized trading platforms were merely a vision. When a few did arrive many dex platforms struggled with the problem of providing enough liquidity. All of that has changed since the introduction of Uniswap, the decentralized finance (defi) protocol that provides users with automated onchain transactions between multiple parties. Uniswap has been the largest dex and automated market maker (AMM) for quite some time in terms of trade volume.
Uniswap typically captures $2 to 3 million in trade volume daily and during the last week, the dex saw $7.1 billion in swaps according to Dune Analytics data. Defipulse stats show that Uniswap is the fifth largest defi protocol in terms of total-value-locked (TVL). After dropping Uniswap v2 back in May, the dex revealed v3 ten months later. The development team is planning for a mainnet launch on May 5, with L2 deployment on Optimism set to follow. Uniswap’s announcement explains that v3 introduces two features which include:
Concentrated liquidity, giving individual LPs granular control over what price ranges their capital is allocated …
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