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March 23, 2021 10:10 pm

Uniswap Unveils Version 3 In Bid To Stay DeFi's Top Dog

An anonymous reader quotes a report from CoinDesk: Uniswap, the leading decentralized exchange (DEX) on Ethereum and a centerpiece of the $42 billion decentralized finance (DeFi) sector, is releasing its third iteration. In a Tuesday blog post, the firm behind the platform said its aim is to make Uniswap "the most flexible and efficient [automated market maker] ever designed." AMMs -- once nearly solely the domain of Uniswap -- have grown in stature along with DeFi's emergence last year. Rivals like SushiSwap, 1inch and others have also made the exchange of Ethereum-based assets easy for many crypto natives. Uniswap v3 is expected to launch on mainnet on May 5, the firm wrote. Notably, Uniswap is eyeing an integration "soon after" with Ethereum throughput booster Optimism. All told, the new version promises greater "up to [4,000 times] capital efficiency relative to Uniswap v2," the firm wrote. The key change, as outlined in the new white paper, is what Uniswap is calling "concentrated liquidity." "In this paper, we present Uniswap v3, a novel AMM that gives liquidity providers more control over the price ranges in which their capital is used, with limited effect on liquidity fragmentation and gas inefficiency," it states.

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