Uniswap v3 is officially launched and the deployment has been completed. This news is like a bombshell, shaking the entire Ethereum DeFi ecosystem. As a leader in the DeFi field, Uniswap has always led the development of the industry with its innovation and openness. The launch of version v3 will definitely bring new changes and opportunities to the Ethereum DeFi ecosystem. Next, let us delve into the highlights of Uniswap v3 and its profound impact on the Ethereum DeFi ecosystem.

The official launch of Uniswap v3 is undoubtedly a major milestone in the DeFi field. Its launch will redefine the standards of decentralized exchanges. Uniswap has always been known for its unique automatic market maker model, and the launch of v3 is a comprehensive upgrade on this basis. By introducing a more flexible market-making scope and degree of centralization, Uniswap v3 provides users with more choices and a more efficient trading experience. This innovation will further promote the development of the DeFi industry and bring unlimited possibilities to more users and projects.

The mainnet deployment of Uniswap v3 is completed, which means that users can experience smoother and more convenient trading services through the new interface and functions. One of the core upgrades of the v3 version is the introduction of a centralized trading strategy, which will allow market makers to better control liquidity and improve capital utilization, thereby achieving higher returns. This change will attract more funds and projects to the Uniswap platform, further strengthen the Ethereum DeFi ecosystem, and bring new vitality and growth points to the entire industry.

The launch of Uniswap v3 will also have a profound impact on the Ethereum ecosystem. As the largest decentralized trading platform on Ethereum, Uniswap’s development direction and strategy will directly affect the direction of the entire DeFi industry. The advent of version v3 marks Uniswap’s continued innovation in technology and products, and also sets an example for other DeFi projects. As more users and funds pour into the Uniswap platform, the Ethereum DeFi ecosystem will become more prosperous and diversified, setting a new benchmark for the entire blockchain industry.

The official launch of Uniswap v3 is undoubtedly good news for the Ethereum DeFi ecosystem. As Uniswap continues to evolve and improve, the Ethereum DeFi ecosystem will also usher in new development opportunities and challenges. As a pioneer and leader in the blockchain industry, Uniswap will continue to lead the development direction of DeFi and create more possibilities for users and projects. Let us look forward to the new era brought by Uniswap v3 and witness the vigorous development of the Ethereum DeFi ecosystem!

The four most famous international exchanges:

Binance INTL	OKX INTL	Gate.io INTL	Huobi INTL
China Line　APP DL	China Line　APP DL	China Line　APP DL	China Line　APP DL

Note: The above exchange logo is the official website registration link, and the text is the APP download link.

The decentralized exchange (DEX) Uniswap is expected to launch the v3 version today, which mainly introduces four major updates such as centralized liquidity, multi-level handling rates, partial range limit orders, and reduced oracle handling fees. It is expected to become the future A model of DEX.

Uniswap was the first AMM protocol born on Ethereum in November 2018, laying the foundation for the subsequent growth of the DeFi ecosystem. In March this year, Uniswap announced that it would upgrade to v3 on the 5th of this month, planning to further inject liquidity into the DeFi ecosystem and reduce transaction risks to a greater extent.

What changes have occurred after the v3 upgrade? 

The biggest change in Uniswap’s v3 upgrade is the introduction of Concentrated Liquidity and Multi-Level Fee Rates (Multiple Fee
Tiers).

First of all, in the v2 version, Uniswap's AMM algorithm adopts the constant product model "xy=k", but this also causes problems such as low capital efficiency and impermanent loss (IL). In v3, Uniswap added so-called granular control, allowing liquidity providers (LP) to concentrate the funds provided in the most frequently traded range, instead of 0 to infinity. This not only maximizes the capital efficiency of LPs, but also reduces IL risks.

Next, Uniswap will add 3 fee rate levels to v3, namely 0.05%, 0.30% and 1.00%. In this way, higher rates can be set on riskier trading pairs, or vice versa, giving LPs the ability to make more strategic adjustments based on expectations for currency price fluctuations.

On the other hand, Uniswap v3 also introduces an oracle that is said to be more convenient and cheaper, and can call more oracle data than v2; partial range limit orders (Range
Orders) provides a limit order similar to that of a centralized exchange, allowing traders to set a price range and trade assets based on this range.

Uniswap even made a bold statement, saying that v3 is the most flexible and efficient AMM design in history.

Many challenges

Uniswap has optimized the LP model and trading functions in v3, making it even more powerful for experienced DeFi players. Although DEX competition has become increasingly fierce and it has to face challenges from rivals on other public chains such as PancakeSwap, Uniswap still plays a good hand.

However, although the new version of Uniswap has been strongly supported by the DeFi community, some doubts have also arisen. For example, in order to cooperate with the introduction of centralized liquidity, the original LP token will be converted into an NFT (non-fungible token) form. Issuance to represent different price ranges may hinder the combinatorial nature of LP tokens.

In addition, in order to alleviate the problems of Ethereum transaction congestion and high handling fees, Uniswap’s v3 will be transferred to the Layer 2 solution Optimism after it is deployed on the mainnet.
superior. If Ethereum 2.0 comes out, Uniswap will also have to solve the problem of liquidity integration between Layer 1 and Layer 2.

Market Performance

In recent weeks, expectations for v3 have fueled Uniswap’s momentum, and both the trading volume of DEX and the price of the governance token UNI have performed well.

CoinMarketCap data shows that Uniswap’s trading volume in the past 24 hours reached US$1.71 billion, accounting for 21.6% of the total DEX trading volume. Although there is still a big gap compared with the tens of billions of dollars in transaction volume of centralized exchanges such as () and (Huobi), as one of the most critical infrastructures in DeFi, Uniswap still consolidates its dominance.

In terms of currency price performance, UNI has been rising since the v3 white paper was released at the end of March, rising from US$25 to US$45, an increase of more than 80%. Currently, UNI's market capitalization has exceeded US$22.25 billion, ranking 9th in the cryptocurrency market and the highest among Ethereum DeFi tokens.