Decentralized exchange UniSwap has announced the launch of UniSwap v3 on the Ethereum mainnet.
UniSwap v3 introduces concentrated liquidity and multiple-tier fees. According to UniSwap, the new features will make the exchange “the most flexible and efficient automated market maker ever designed” making gas fees cheaper on Ethereum transactions.
LPs will be able to provide liquidity with up to 4000x capital efficiency relative to Uniswap v2, earning higher returns on their capital. Capital efficiency paves the way for low-slippage trade execution that can surpass both centralized exchanges and stablecoin-focused AMMs. LPs can significantly increase their exposure to preferred assets and reduce their downside risk, and will be able sell one asset for another by adding liquidity to a price range entirely above or below the market price, approximating a fee-earning limit order that executes along a smooth curve.
Below are experts commenting on the upgrade, offering insight as to what this means for new users, whether or not this upgrade is a game changer for the space, and how this could affect the current DeFi wave.
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