Cryptocurrency trading platforms provide regular updates to ensure their users continue to enjoy high-end features. Decentralized exchange Uniswap has launched its V3, and it comes with some exciting features for the users.
Uniswap V3 officially launches
The decentralized finance (DeFi) space has experienced immense growth in recent months, with new products and features being released every week. Uniswap, the leading decentralized exchange (DEX), will need to also roll out new features to ensure it maintains its position in the second.
The decentralized exchange Uniswap has released version 3 of its protocol. This latest upgrade will give users more control over the liquidity they provide on the platform and lower their trading risks.
Uniswap V3 is expected to make the exchange the most flexible and efficient automated market maker (AMM) ever designed. Uniswap stated that the new protocol version comes with three features. The first is concentrated liquidity. According to Uniswap, AMMs has always required all liquidity providers to share similar strategies and deposit funds across the entire price curve. Thus, failing to account for individual expectations of future price activity. However, with the concentrated liquidity provided by Uniswap V3, traders no longer need to put as much capital on the line to achieve meaningful results.
Uniswap is also introducing more fee tiers, allowing traders to assess their risk level when trading volatile assets. Lastly, the Uniswap V3 comes with easier and cheaper oracles, ensuring that the price is up to date and reduces the risk of being negatively affected by bad data. Uniswap stated that although these advanced trading features won’t make much sense to newbie traders, they can lead to higher returns for the expert DeFi traders and investors.
Uniswap remains the most popular Ethereum-based DEX
Uniswap V3 is coming roughly a year after the exchange released the V2. The decentralized exchange remains the most popular on the Ethereum blockchain. It allows people to swap tokens that exist on the Ethereum network.
Uniswap is an AMM, which means it relies on algorithms to price assets instead of buying and selling orders. Users on the platform provide liquidity by locking up their tokens, while others can borrow those tokens and pay them back with interest to the liquidity providers.
According to Coinmarketcap, Uniswap processes over $1.5 billion in trading volume per day. Decentralized exchanges are still behind their centralized counterparts, with Binance processing over $70 billion per day.