Originally from: RealSatoshi, the author is old man Suo.
V3 was released smoothly in the bull market. Compared with Dogecoin, which is out of the circle, the release of V3 is extremely deserted. The team did not do too much flattery and compromise because of the bull market, such as starting liquidity mining, or some short-sighted actions to stimulate prices in the short term.
Many people complain about V3 because of handling fees, but the innovation of V3 lies in the geometric progression of capital efficiency, and the eternal theme of DeFi is capital efficiency. From the different emphases of each DEX version iteration, it also reflects the difference in the pattern between the teams, and whether it has grasped the essence and lifeline of DeFi.
The importance of capital efficiency is far greater than scalability, handling fees, and vertical series acquisitions.
Liquidity mining is actually not conducive to increasing capital efficiency, and Uniswap has proved that a project with a moat and first-mover advantages can attract huge amounts of liquidity without resorting to the subsidy strategy of liquidity mining. At present, the liquidity mining incentives of various public chain ecology have obviously entered a serious involution under the intervention of major whales.
The release of V3 has driven retail LP providers away from passive LP offerings without a price range to active LP offerings with a price range. This puts high demands on the professionalism of LP providers, and an opportunity that comes with it is the smart pool of active market maker strategies. VISR/MIST/Charm are the three projects that currently have the concept of V3 machine gun pool, but no products have been produced yet. We can also look forward to the old-fashioned top machine gun pools such as YFI taking the lead in developing the V3 market maker strategy.
The above is that Uniswap V3 laid off market makers.
The release of V3 will bring many investment opportunities in surrounding infrastructure, and the active market maker strategy smart pool is just the tip of the iceberg. Judging whether a product is great or not lies in this, whether each iteration of it can generate more investment opportunities, attract more capital, technology and talents, and produce a positive spiral effect.
Uniswap V3 also laid off grid trading. V2’s passive LP offering without a price range is actually infinitely dense grid trading without a price range, while V3’s active LP offering with a price range becomes Grid trading with precise intervals.
Witnessing the iteration of UNI from V1 to V2 to V3 also makes us more convinced that Uniswap, an epoch-making, revolutionary, and innovative product with continuous self-iteration capabilities, is worth holding for a long-term across cycles. I am very gratified, not only because there are more and more currencies worthy of value investment like UNI in the currency circle, but also because now we can talk with confidence that value investment does exist in the currency circle.
Of course, capital efficiency is important, and Layer 2 must also catch up with the schedule as soon as possible. As a relatively reliable second-tier solution, Polygon’s recent momentum should not be underestimated, whether it is from the increase of TVL or the cooperation with the old top DeFi projects such as AAVE and CRV. But the second-tier solution is not only a technical issue, but also a question of standing and faction. At present, the capital led by Paradigm, which leads the direction of the currency circle and holds the core voice of the currency circle, wants to promote Optimistic. As for whether Optimistic can undertake it, we have to use our strength to speak. The battle for liquidity in the second-tier scheme must be a highlight in the future, and the intensity of the fight can be glimpsed.
Another major innovation of V3 is LP or NFT. The attempt to combine NFT with DeFi has begun in the past two years. However, the innovation of LP or NFT is likely to give NFT real financial wings, which means that the track of NFT has just begun.
UNI makes market makers, grid trading, and selling high and buying low all laid off. The blood of finance is liquidity and market makers. For such a powerful thing, one UNI can replace a large part.
In theory, as the strongest DeFi leader, UNI can continue to innovate, suffocating other AMM DEXs, and constantly squeezing the living space of other competing products. Therefore, we should have such an understanding that what you buy is not only a UNI, but also a ticket to a new world. because
