Uniswap v3: reactions to DeFi’s most anticipated DEX upgrade

Quick Take

  • Uniswap v3 is slated to launch on May 5th on Ethereum, and on May 12th on Optimism — a highly anticipated layer 2 scaling solution.
  • The main new feature, custom liquidity ranges, enables multiple orders of magnitude improvement in capital-efficiency, combining the best of AMMs and order book exchanges.
  • The biggest remaining question is whether Uniswap v3 kickstarts a migration to layer 2, thus alleviating fee pressures for users.
There’s quite a bit to say about the details of Uniswap’s v3 release. But if Uniswap’s core intention was to improve capital-efficiency and “to prove AMMs can outcompete traditional exchanges on all fronts,” v3 accomplishes about as much as could have been expected on that front. To understand this, we can compare the main innovation […]

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