A deep dive into Uniswap v3 with The Block's Mika Honkasalo

Episode 19 of Season 3 of The Scoop was recorded remotely with The Block’s Frank Chaparro and Mika Honkasalo. 

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After much anticipation, Uniswap v3 — the latest upgrade to the Ethereum-based decentralized exchange — was announced Tuesday.

On this episode of The Scoop, The Block Research's Mika Honkasalo walked through the designed upgrade, explaining the significance of Uniswap's adoption of "concentrated liquidity" which aims to make trading on the platform more capital efficient. 

In Honkasalo's view, this move will help with the adoption of Uniswap among traders and perhaps serve as a tailwind for the broader DeFi market. 

"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,” he said, adding:

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"I think what this unlocks next is the possibility to support just more volumes, especially in combination with the L2 launch, which hopefully comes very quickly after the L1 launch to really start competing against centralized exchanges."

Uniswap v3 — set to be implemented in May — will also include Uniswap's adoption of scaling solution Optimism, which aims to reduce gas fees.


© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

About Author

Frank Chaparro is Host of The Scoop podcast and Director of Special Projects. He also writes a biweekly newsletter. Chaparro started his career at Business Insider, where he specialized in the intersection of digital assets and Wall Street, market structure, and financial technology. Soon after joining Business Insider out of Fordham University, Chaparro was interviewing top finance and tech executives, including billionaire Mark Cuban, “Flash Boys” star Brad Katsuyama, Cboe Global Markets CEO Ed Tilly, and New York Stock Exchange President Tom Farley. In 2018, he become a sought after reporter in the crypto world, interviewing luminaries such as Tyler Winklevoss, the cofounder of Gemini, Jeremy Allaire, the CEO of Circle, and Fundstrat head Tom Lee. For inquiries or tips, email [email protected].