Hello everyone, the DEFI world is in full revolution, technological improvements are constantly occurring in order to make life easier for users. A recent announcement has caught the attention of the community, DEX (decentralized broker) UNISWAP considered the largest protocol of the Ethereum network announced its newest update, Uniswap V3.
This update will bring more efficiency to the market, reducing costs and increasing the range of possibilities for users. Below I will describe some of them:
1- Improving the efficiency of AMM: users will be able to choose a price range which they want to provide liquidity in their pools and automate this process.
2- This implies a reduction in the risk of losses with Impermanent Loss. They will even have rate ranges for the pools according to their risk levels. This entire process will reduce the slipage of operations.
Illustration of an example:
3- Optimism Rollups will be implemented in L2, making it possible to reduce transaction fees in the protocol by around 100X, that is, the high rates of the Ethereum network will no longer be an obstacle to using UNISWAP.
4- The interaction between the SNX, CURVE and other protocols will increase, increasing the liquidity of the protocol.
5- Oracles will be optimized: V3 oracles will have the ability to provide time-weighted average prices (TWAPs) on demand for any period in the last 9 days. This eliminates the need for integrators to verify historical values, reducing the costs of the Oracles.
6- Holders of the UNI token who perform STAKE will now receive dividends from fees charged in the operations of the protocol. The user will be able to track how much he will be receiving from dividends.
All of these improvements have the potential to increase the network effect of the protocol, taking it to new heights, adding value to the UNI token, which consequently brings happiness to its holders.
More information can be found at https://uniswap.org/blog/uniswap-v3/.
I hope to have contributed to the increase of your knowledge, thank you guys, until next time.