What are the improvements in Uniswap V3? What new expectations does its competitor bring us?
The long-awaited Uniswap finally released the latest version 3.0 plan. On March 24, Uniswap officially announced that the Uniswap V3 version will be officially launched on the Ethereum mainnet on May 5, and L2 deployment will be carried out on Optimism soon.According to the official release of Uniswap, Uniswap v3 introduces:1. Aggregated liquidity with granular control: The core highlight of Uniswap V3 is the addition of granular control to the original XY=K curve, so that users can concentrate capital efficiency in the most frequently traded range to obtain maximum returns.2. Multiple fee tiers: Uniswap v3 offers three separate fee tiers for each pair of LPs: -0.05%, 0.30%, and 1.00%. This range of options ensures that LPs adjust their margins according to the volatility of the currency pair.3. Range order: The user can recharge an asset within a certain price range set by the user. If the asset enters the range set by the user, the asset will gradually be replaced by another asset of the trading pair. If the asset price If the range exceeds the price range, it will all be replaced with another type of asset.4. The oracle machine can read historical data multiple times, and the cost is reduced: The major improvement of the V3 version to the oracle machine is that a third party can calculate any TWAP price in the past about 9 days through a chain call, and at the same time through overall optimization, compared with V2 Reduced Gas consumption by 50%.Through granular control, users can invest their own funds in a very small range. If the price deviates from this range, the user will automatically stop the loss, which solves the impermanent loss to a certain extent. But at the same time, a problem is that it will increase the overall complexity and increase the Gas consumption. The team first stated in the article that the gas consumption of the V3 version will be slightly lower than that of the V2, but then in the detailed introduction, it said that more granular fund pools may increase the gas cost of transactions. knew.Uniswap is the absolute leader of the current DEX, and the release of its new version will surely bring a new round of DEX battle. Uniswap's eye-catching performance last year produced many imitators, some of whom tried to optimize and upgrade Uniswap on the "shoulders of giants". After nearly a year of survival of the fittest, these "imitators" who have made breakthroughs and innovations It has also developed into a strong competitor on the Dex track.This article will take Uniswap as the starting point. After understanding the new version of Uniswap, let’s see what improvements its “imitators” are implementing. In the next DEX competition, what projects are we looking forward to?The "subversion" of Sushiswap to Uniswap lies in its improvement of the first problem of Uniswap. Sushiswap has made some changes on the basis of Uniswap's incentive mechanism, adding token economic incentives, that is, allocating part of its transaction fees to Sushiswap Holders of the SUSHI token.Sushiswap also provided Uniswap's liquidity providers with the opportunity to earn SUSHI tokens, and launched a liquidity pool migration plan for Uniswap to rob Uniswap users. In a short period of time, Sushiswap's asset lock-up volume exceeded Uniswap's, and Uniswap's "early issuance of tokens" is indeed directly related to the threat of Sushiswap.After Sushiswap became popular, many imitators of Sushiswap quickly appeared on the market. However, most of them were just Fork flows without any improvement. Sashimiswap has made a lot of innovations based on it, including:1. Hybrid wealth management model: To meet the needs of different users, Sashimiswap has launched two major platforms: Investment and Vaults. SashimiSwap Investment is the first contract to maximize the use of funds in the trading pool. SashimiSwap will transfer some idle pledged tokens to the SashimiSwap Investment contract to earn additional income for liquidity providers. SashimiSwap Vaults invests the assets pledged by users through other DeFi products. The contract will continuously select other DeFi platforms with the highest returns to ensure maximum returns.2. Remove team shares: Compared with when Uniswap first released UNI, only 60% was allocated to the community, and Sushiswap founders successively cashed out large shares, SashimiSwap has removed all team shares from the beginning, and there is no pre-mining and no financing needs, and will select core governance through proposals, and completely hand over the control to the community.
3. Dual mining: users only need to mortgage UNI-V2 LP Token on SashimiSwap, and then the system will automatically carry out liquidity mining on SashimiSwap Farms and Uniswap, thereby obtaining double rewards of SASHIMI and UNI, and will support other platforms in the future LP Token.4. Cross-chain expansion: In the future, Sashimi will transfer value with other blockchains, such as AESwap on the aelf blockchain.
Curve Finance is a decentralized exchange specially designed for stablecoins. Curve Finance has made an important breakthrough in solving the second problem of Uniswap. At the beginning of 2021, Curve Finance launched a cross-asset Swap transaction service, which caused a big stir in the DEX market. Wave, through Synthetix's synthetic asset bridge, Curve can realize low-slippage exchange between different types of assets (such as BTC, ETH, DAI, etc.).
Because of its low fee rate and low slippage, Curve Finance has become the best place for stable currency exchange, known as "the Uniswap of stable currency".To put it simply, Curve’s cross-asset conversion process includes two transactions. Taking DAI to wBTC as an example, first DAI will be converted to sUSD, and then converted to sBTC; secondly, sBTC will be converted to wBTC. Throughout the process, Synthetix played the role of a bridge (with the help of Synthetix's mortgage synthetic asset model, the exchange of sUSD and sBTC has no slippage), and the reason why this can be achieved is also related to the previous accumulation. Synthetix's synthetic assets already have two pools, sBTC and sUSD, on Curve, and the liquidity of these two pools is not low. The sUSD pool has over $83 million in liquidity, while the sBTC pool has over $250 million in liquidity. Finally, the exchange of sBTC and wBTC uses Curve’s CFMM, which can achieve extremely low slippage.As the earliest proposer of AMM, Bancor did not pay enough attention to AMM, and it was carried forward by Uniswap. In this regard, the new version of Bancor tries to make improvements on the second problem of Uniswap in order to restore the lost glory.
The specific improvement methods are as follows:1. Impermanence loss insurance. Since the birth of AMM, impermanence loss has been the main pain point of liquidity providers. With Bancor V2.1, liquidity providers can now mortgage unilateral assets and earn income with full impermanence loss protection.
2. Liquidity black hole, free loss insurance and one-sided liquidity are also applicable to BNT’s liquidity supply, which has a good synergy with Bancor’s ongoing liquidity mining incentive mechanism, because BNT rewards can be directly invested in In the liquidity pool, the phenomenon of "mine being dug and collapsed" is minimized.
Regarding layer 2 expansion, Bancor will launch a decentralized exchange on the Arbitrum mainnet, which is scheduled to launch in the second quarter of 2021.
At present, there is a lot of debate on Uniswap V3 in the market. There are voices saying that the capital efficiency improvement of V3 will reduce TVL, and some voices say that the new version can make it compete with Curve again on the stablecoin trading pair. In general, V3 does not have the amazing feeling that V1 left when it first came out. The competition in the market is still going on, and only projects with constant breakthroughs and innovations can continuously bring innovation premiums to investors. In the future, more projects will bring new inspiration to the market, and these small innovations will bring greater value in the continuous iteration of the market.
This article only represents the personal views of encrypted notebooks and does not constitute any investment opinions or suggestions
