What about Uniswap V3 if you don't blow it?

There was a lot of speculation about the concept of Uniswap V3, and now the boots have finally landed.

Billing processes are more flexible, the market is tighter than design processes, and more oracles…

Some people believe that Uniswap V3 will affect other DEXs, but many doubt that upgrading Uniswap V3 is just DIY.

What is the update for Uniswap V3? What do these updates mean? What do industry experts think of Uniswap V3?

Uniswap V3 "Tau"

On the morning of March 24, Uniswap announced the details of the V3 version, the version will be released on the Ethereum mainnet on May 5 this year, and the Ethereum 2-layer network optimism version will be released in mid-May. .

According to preliminary information, the biggest change of the V3 version compared to the previous version is that the V3 LP can offer up to 4,000 times the capacity of the market, and users can get a better return on investment.

When the news broke, the entire cryptocurrency community turned to Uniswap V3.

But UNI's dismal exchange rate stands in stark contrast to the fiery market.

Shortly after the news broke, UNI announced a decline, with UNI losing 10% daily from $36.8 to a low of $29, according to Binance data.

Already last year, the Uniswap team announced the way to 2021, with the V3 version being the most important.

Since the beginning of this year, the value of UNI has steadily increased, rising from around $5 at the start of the year to a maximum of $36, an increase of almost 700%.

Uniswap developer Hayden Adams wrote on his Twitter feed on March 20, "If we were to release Uniswap V3 details for another week I would go nuts." In the short term, it was $34, up 10.95%.

The V3 promotion and data can be said to affect market sentiment, and it all has to do with the exchange rate.

Does UNI's slowdown after Uniswap V3 announcement mean market won't buy new leader DEX?

"There are mixed thoughts in my mind." Some gamers have shared their idea of ​​Uniswap V3 for Deep Chain Finance, saying, "It's new, but it still seems almost useless."

In fact, few people hold this position.

So, let's first look at how Uniswap V3 was patched and where it was patched.

What's new in Uniswap V3?

As explained, the new V3 version generally includes the following updates:

1. Centralized Liquidity:

In Uniswap V2, LP liquidity is evenly distributed in "zero-positive infinite" intervals as a curve of "x*y=k". Version V3 allows LPs to invest in earnings over a period of time. the price of sex.

Given the simplicity, this is to maximize investment efficiency by allowing resource providers (LPs) to manage funds at a certain cost and reduce long-term costs.

The benefit of this is that in addition to maximizing investment efficiency, it focuses on trading depth. However, for most trading partners, the high volatility makes it difficult to choose a reasonable price. If the cost is out of range, the LP will not be able to earn income for as long.

2. Multi-tariff flexibility:

LPs can be configured to combine values ​​into multiple levels of risk. Specifically, Uniswap has three different levels for LP: 0.05%, 0.30%, and 1.00%, and new leaders can be added by the administration. In other words, low-risk trading partners such as fixed income securities may choose the lower ratio, and high-risk non-volatile stocks may choose the higher ratio. This update is current, but more DEXs will be needed in the future.

3. Inadequate determination in the pool:

Contrary to SushiSwap's particular restrictions, the Uniswap V3 version presents the book order form, understood as a medium of exchange, allowing users to place orders at a fixed price of a trading partner's specialization. Now business value works on its own. When the price enters the range, the market begins to slow down and when the price reaches the end of the quantity, the market succeeds.

4. LP non fongible (NFT):

As a commercial product of a custom value curve, operating functions cannot be changed and are not represented as ERC-20 tokens in key processes.

Instead, LP asset token securities are represented as non-fungible tokens (NFTs). In other words, LP is a liquid function. Some claim this could cause significant issues for third-party DeFi protocols that include Uniswap LP tokens. However, the sharing site can be exchanged with an external contract or another third-party contract, for example ERC-20 tokens.

5. Oracle Update:

In fact, Uniswap adds an Oracle Time-Length (TWAP) feature in the V2 release. An update from the V3 version of the Oracle machines is that the phone call allows third parties to calculate the rates provided by all TWAPs in the last 9 days, and all actions to the best of its ability make the integration easier and cheaper. , almost 50% less fuel consumption than V2.

6. Migration to Layer 2 version of the Optimism mainnet:

According to officials, the Uniswap V3 version will be released on the Ethereum mainnet on May 5, and the Optimism version of the Ethereum 2-layer network will be released in mid-May. Unlike the SushiSwap option to refer to the Fantom, Polygon, xDai Chain, BSC and other "horizontal" scales, Uniswap chose Optimism as an extension of the Ethereum mainnet. However, Optimism has yet to release a public mainnet beta, and users will have to wait for actual use of Uniswap V3.

What do they think of Uniswap V3?

What do experts and industry executives think of the Uniswap V3 release?

Blue Fox: Uniswap V3 is awesome.

Uniswap V3 performs well and AMM's in-depth analysis is amazing.

1. Capacity upgrade, according to the instructions, it can be upgraded 4000 times from V2.

2. Improved investment performance leads to lower costs.

3. LP may increase the risk of preferred assets.

4. Better faith;

5. There are many custom designs.

As Blue Fox Notes mentioned earlier, Uniswap practices Shaolin martial arts and enhances depth. This is a completely different development and deserves continued attention.

Yang Mindao, developer of dForce: Uniswap V3, will have a major impact on other DEX and AMM mechanisms.

The release of V3 is a pro and a con. First of all, with the advent of V3, revenues have increased, and Uniswap has moved closer to the book model.

However, at the same time, when the LP token goes from homogenization to NFT, it destroys the composition and affects the capacity and efficiency of the LP token. Additionally, there is an additional difficulty in funding the LP token after running V3. It may continue to rise, but the custom curve will reduce the steady decline.

If V2 is a complete AMM, V3 has become the PMM to be managed, which makes it a better business model for the market.

When it comes to investing, there are a few general tips that are worth trying. Although the outflow of water from the lake is directed towards borrowing to create interest, V3 has not made good use of this information.

According to Yang Mindao's theory, whether Uniswap V3 is good or bad, Uniswap V3 will go directly to layer 2 to solve investment and operational issues, so it will have a major impact on other DEX factors and most of the MA mechanisms in general. .

Unlike Yang Mindao, DODO, an industry leader who has always followed the PMM mechanism from the beginning, is not happy with the changes brought by Uniswap V3.

DODO Co-Founder Radar Device: The Concept of AMM in Uniswap V2, V2 and V3 Can Stay Together for a Long Time

The Uniswap V3 version has advantages and disadvantages compared to the previous one.

The key to the whole V3 is to increase investment to increase capacity. But it sacrifices the original simplicity and elegance of the V2.

Moreover, Oracle (oracle technology) is well designed to move tips to use forecasting and storage and avoid data management costs for the last 9 days.

However, the new option value added in V3 should be available long term with DEX.

Uniswap is currently using a commercial license that no one else has been valid for two years.

In this respect, Uniswap has become more trustworthy and doesn't seem used to being an older brother in the industry.

It's also a shame that Uniswap V3 doesn't have an assembly right now, in the long run liquidity will always come from the negative. However you view the new process, the ToC experience will not be the same. aggregator;

More fluid means more IL (no independence). Nobody can hold this industry, so Uniswap V3 upgrade is not huge and V2 and V3 can stay together for a long time.

Uniswap V3 is good for the market because it offers more choices. However, this does not reduce the constant losses needed to maximize capacity.

Currently, Uniswap V2 is an integral part of AMM and all enhancements to the AMM framework have been patched.

The key to marketing is the cost of product management. AMM is cost-effective as an internal data system, and its design is more robust, consistent, and compatible with Ethereum infrastructure. However, when improving the infrastructure, there will be industry development algorithms that go beyond these processes to minimize the introduction of good quality business data and business intelligence from chain speed.

Minako Kojima: Je déteste V3

Two new features introduced in the new version of Uniswap allow it to re-compete the curve at the stablecoin trading partner, but V3 surprisingly doesn't think V1 left when it was first released.

I don't like V3 because the DeFi protocol requires a minimum. Now this version looks like a bunch of other codes just above V2.

Some people see Uniswap V3 happy, others think it's an easy fix. We will have to wait and see how this will affect itself and DEX running after Uniswap V3 is released.