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Rank #23 Decentralized

About Uniswap_V3

Uniswap is a DEX platform fully deployed on the Ethereum chain, based on & LDQuo; Automatic market making by constant product & LDquo; Model [reserve pool model, on-chain matchmaking, on-chain clearing] and facilitate automated exchange transactions between ETH and ERC20 token digital assets. Uniswap's trading design differs from the traditional limit order model in that the Uniswap protocol creates a single liquidity reserve for each ETH and ERC20 token trading pair. The liquidity reserve for each token is a trading smart contract that holds a certain number of ETH and ERC20 tokens. The Uniswap trading contract acts as an automated market maker (AMM) and determines the exchange rate between ETH and ERC20 tokens based on the relative amount of each token in reserve. Instead of filling out buy and sell orders, users trade with the pool by adding one token and removing another. That is, two certain amounts of crypto assets are put into a smart contract, and the trading price of the token can be automatically calculated based on the automated market maker algorithm. The point of the algorithm is that the product of the quantities of two assets exchanged remains a constant, a constant product market maker, regardless of the volume of trading. The formula is x*y=k, where x and y are the number of tokens in the liquidity pool, and k is the product. To keep k constant, x and y have to invert each other. According to the Uniswap project team, Uniswap V3 has undergone multiple rounds of audits and is scheduled to be officially launched on the Ethereum main network on May 5, followed by possible deployment to the Tier 2 solution Modernism network to further reduce Gas costs. Compared with V2, V3: Uniswap V3 introduces: Concentrated liquidity allows individual LPS to exercise fine control over the price range at which their capital is allocated. The various positions are aggregated into a pool to form a portfolio curve for the user to trade. Multiple fee levels that allow limited partners to be appropriately compensated for taking on different levels of risk These features make Uniswap V3 the most flexible and efficient AMM ever: Compared to Uniswap V2, Limited partners (LPs) can provide liquidity up to 4,000 times more capital efficient, resulting in a higher return on capital Capital efficiency paves the way for low-slip trading execution, an AMM approach that can transcend centralized exchanges and stable-coin-centric capital markets Limited partners can significantly increase their exposure to preferred assets and reduce their downside risk A limited partner can sell another asset by increasing liquidity to a price range that is completely above or below the market price, which approximates a profit limit order executed along a smooth curve
24h Trading Volume
16,314.39 BTC
New Currency
Asset Holdings
Global Ranking
United States