Uniswap V3

Uniswap V3 is Live to Fend Off Competitors

Uniswap V3

Leading Ethereum-based decentralized exchange Uniswap now offers advanced features to make the automated market maker (AMM) much more attractive for the crypto traders with the deepest pockets. 

As a big step forward, Uniswap said the v3 is its most powerful version of the protocol, with the new Concentrated Liquidity mechanism, better execution for traders, and superior infrastructure at the heart of DeFi. 

According to Uniswap, its concentrated liquidity mechanism offers enhanced capital efficiency for liquidity providers. It allows liquidity providers to define a band in which their deposits will trade. They might deposit 100 USDC and 100 DAI, but with the caveat that their USDC will never trade for less than 0.99 DAI and never more than 1.01 DAI. 

This is Uniswap’s solution to the problem of impermanent loss (IL). In a classic AMM, a liquidity provider can lose money over shorter periods of time when one token in a pool of two gains too much against the other. With Uniswap V3, Liquidity providers can simply define custom price ranges their deposits will trade to avoid the impermanent loss. 

Uniswap V3 offers multiple fee tiers to liquidity providers. This enables them to define different fees for trading, which should make it more attractive to provide liquidity to less frequently traded tokens. 

Additionally, Uniswap represents every position as an NFT, with a unique piece of on-chain generative art based on the properties of each position. 

 

Square Bitcoin Trading Revenue Up 11x

“These features make Uniswap v3 the most flexible and efficient AMM ever designed,” Uniswap wrote in the announcement. 

Uniswap’s founder Hayden Adams tweeted over its first 24 hours of going live, V3 had already processed $150 million in transaction volume, more than twice the volume that v2 saw in its first month. At the time of writing, Uniswap reported a 24-hour volume of $216 million with a total value locked (TVL) of $351 million for V3.

Payment technology company Square recorded $3.51 billion in Bitcoin (BTC) revenue during 2021’s first quarter, up 11 times year over year. According to Thursday’s earnings release, thanks to the gains in Bitcoin revenue, Square’s overall revenue rose to $5.06 billion, up 266%.

Square’s payments app Cash App offers users to buy and sell Bitcoin within the app. Also, within late 2020 and early 2021, Square purchased a combined $220 million worth of Bitcoin to add to its corporate balance sheet. 

As an interesting note, Twitter, also founded by Square CEO Jack Dorsey, just introduced its long-rumored in-app tipping feature. Twitter is enabling some users to pay each other with a variety of platforms such as Venmo and Cash App.

Considering that Jack Dorsey is an outspoken Bitcoin and crypto advocate, Twitter’s new tipping feature appears to be a natural fit for crypto payments. 

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