Unveiled in March, Uniswap v3 aims to make the on-network exchange of tokens drastically more capital-efficient. As reported at the time, the design hones in on a capability called concentrated liquidity by which liquidity providers (LPs) can make markets within customized price ranges.
As The Block Research's Mika Honkasalo said during a post-announcement appearance on The Scoop podcast: "I think this is why Uniswap really had nowhere to go in their design except move towards this sort of active liquidity provision because that’s something that works with traditional markets."
In addition, the Uniswap team said that Uniswap v3 would be deployed at later date on Optimistic Rollup, a layer-two protocol intended to drive down transaction costs.
Data collected by The Block shows that Uniswap continues to be the dominant Ethereum-based decentralized exchange, pulling in approximately $51 billion in volume during the month of April.
Post-trade in capital markets today operates primarily based on provision of balance-sheet to off-set counterparty risk, either directly or indirectly, via settlement agents, CCPs and CSDs etc. The issues with this ‘hub and spoke’ model are well known, including the resulting massive duplication of data, bifurcated processes, concentration of risk and subsequent deployment of capital and resources that could be better utilized.
On this episode of The Scoop, eToro's newly appointed US lead Lule Demmissie explained why she doesn't see retail's newfound presence in the market subsiding anytime soon and how eToro plans to capitalize on growing the business across cryptocurrencies and stock trading.