Today, the top decentralized finance (DeFi) protocol, Uniswap, launches its version 3, which reportedly provides better user control over their respective liquidity on top of promising greater benefits from riskier trades. Notably, the Uniswap v3 came one year after its v2 launched last May 2020.
In anticipation of the Uniswap v3, the protocol’s esteemed users began trading franticly, thus, pushing Uniswap’s recorded trading volume yesterday to about $1.9 billion. Although still miles away compared to some of today’s most prominent centralized spot exchanges, such as Huobi and Binance, which managed to record $20.7 billion and $69 billion, respectively, many still believe that the protocol is heading in the right direction.
As per Uniswap, the ultimate goal of its v3 is to become the most efficient yet bendable automated market maker (AMM) ever designed. It aims to do just that utilizing its three most-highlighted features: concentrated liquidity, revamped fee tiers, and better approachable oracles. While the protocol admittedly thinks that such advanced trading features wouldn’t appeal that much with some of its newest users, Uniswap firmly believes that these three specific features could elevate them to grander heights.
Mere minutes following the official launching of the Uniswap v3, the protocol already attracted more than $1.3 million total value locked. It continued to surge to reach as high as $24.6 million as of press time.