Will Uniswap V3, which outperformed V2 on the first day of launch, be the catalyst for a new wave of DeFi

Original title:"Uniswap V3 is officially launched, and its first day performance is far better than V2. Will it be the catalyst for a new wave of DeFi?

Original source: Running Finance

In 2020, the mainstream market performance of flatcake decadence is poor,DeFiProtuberance, whereUniswapV2 became the automatic market maker AMM by virtue of constant productDEXField leader, has become the new wealth password in the encryption industry.

Over the past year,Uniswap V2Keep refreshing decentralizationexchangeRecords, lockups and trading volumes continue to set new highs. Today,Uniwap V3Version has been officially launched, will become a new round of crowingDeFiThe key to the boom?

Uniswap V3After the first day,UniswapThe founder ofHayden AdamsSaid on Twitter that its24Hourly volume has been reachedV2More than twice as much as the first month.

As of press time of Running Finance,UniswapThe total quantity of locked warehouse has been broken through5$(5.4625Hundred million dollars),24Hourly transaction volume up to4.094Million dollars. In addition, according toUniswap InfoAccording to official data,Uniswap V3 24Hourly trading volume and lockup volume ratio75.03%, far more thanV2the19.57%.

fromUniswap V3So far, the lockup volume and trading data show that the new version of the core measure of "liquidity concentration" is more successful, and the higher capital efficiency provides stronger execution force for trading. It is foreseeable that for a long time to come,UniswapWill be heldDEXNo. 1 in the world. Ask, it will start a new roundDeFiBoom?

2020yearsDeFiboom

review2020yearsDeFiDevelop, be activeThe walletThe number from5.8By the tens of thousands.20M; Transactions from210$100 million to grow to2700$100 million and EthereumDeFiecological130A total of $100 million is locked in at an all-time high.

The DeFi boom was sparked by "fluid mining" and "yield farming".

The world, all for profit. In a poor pie market and a slow global economy, liquidity mining projects provide liquidity through "liquidity-"Yield in the substitute currency" has attracted a flood of money. At this timeDeFiThe market, wild growth, overgrown with weeds, accompanied by code-free audits, hacking attacks,securityFrequent problems and many other problems, willDeFiIt turned into a casino.

During this brief spell of heat,YAMThe beginning is the beginning48The hour crash brought more and more people back to reason,DeFiDecentralization is behind the heatfinancialThe transparency and security of the financial industry make it possible to upgrade in the future.

Decentralized Exchange (DEX), decentralized lending,Stable currency, payment and other types of decentralized financial applications began to step into the track of healthy development.

And among other things,DEX As aDeFiAn important part of ecology, it is also in the process of continuous innovationDeFiThe new craze gathers energy.

DEXThe ecological pattern of

According to theQKL123The data showed that,DeFiThe total warehousing quantity is683.93$100 million, of which the lending platformCompoundandMakerAccounting for the total amount of locked warehouse respectively16.5%and16.1%.DEXplatformUniswapandCurveAccounting for the total amount of locked warehouse respectively15.4%and10.6%.

As theDeFiWith the continuous development of ecology, business segments are constantly expanding under the market demand.DEXFaced with the dilemma of not being able to meet more specific needs of users, the pain points such as low efficiency of capital, variable loss, high sliding point, high handling fee and insufficient incentive have prompted some innovative formsDEXBirth after birth.

-Bancor

BancorIs the earliestAMMProposer, itsV1Version withUniswap V1Similarly, you need to use its platformBNTTokens are used as a medium of exchange for transactions.Bancor V2By means of the elastic supply model and the way of mortgaging unilateral assets, the requirement of double-sided liquid deposit is removed, and the fixed liquid reserve is used to make dynamic adjustment through the forecasting machineAMMPool weighting, which keeps the internal and external market prices of the capital pool unified, ensures that the liquidity provider can earn profits under the condition of obtaining completely volatile loss protection. In addition,BancorLiquidity insurance is provided for users. In addition to liquidity benefits, users can also enjoy compensation for fickle losses.

-Curve

CurveIt's a combination of a constant sum and a constant product functionAMMTo minimize the sliding point of assets with relatively stable prices.CurveThe asset is exchanged through a packaged version of the token asset, e.gsUSDandsETH. throughSynthetixMortgage synthetic assets model, convertibility between the two without slippage, based onCurveOne's ownAMMThe model completes the exchange between the packaged version token and the target token.

-SushiSwap

It basically continuesUniswapThe core design, withUniswapFocus on theAMMTo explore in different depths,SushiSwapThe direction of development is to develop into a diversified financial platform. These include transactions, loans,optionsAnd futures; A single vault; Token issuance platform;NFTMultiple financial product lines, such as issuing platforms, will be promoted together. At the same time, based onOnsenThe incentivepolicyWill helpSushiSwapAcquire long-term positive liquidity.

-PancakeSwap

PancakeSwapIs based onCurrency,Intelligent chainBSCDecentralized trading platform. In contrast toUniswap,Bancor,CurveAs well asShshiSwap.PancakeSwapUser enjoyment ofBSCOn the lowerGasCost and efficiency. And,PancakeSwapIt has a sound liquidity incentive policy, and maintains the enthusiasm of liquidity providers through the deflation mechanism of its platform's native tokens, so as to ensure a good depth of liquidityAMM. In addition,PancakeSwapDiversified product ecology allows it to gain a high degree of user attention and participation.

Uniswap V3 The diversification of financial trends

As aDEXThe leading project of theUniswap V3Version online, no doubt for the wholeDEXThe ecological development of the field has a greater impact.

As mentioned above,Uniswap V3The biggest innovation is the "concentration of liquidity", which is the core strategy proposed by him to solve the problem of low capital efficiency. Its specific features are as follows:

-Increased granularity control, allowing liquidity providers to deploy funds in the most frequent trading areas, improving utilization of funds, reducing trading slip-points, and maximizing returns.

Granular control, which means increased transaction complexity, inevitably leads toGasThe increase in fees.

inV3When the version went live, many people made fun of itV3The operating cost is too high.CPlusPlusThe developers areReddit", says:"Uniswap V3The reduction of the commitmentGASThe fee has fallen to nothing inUniswap V3The cost of processing transactions in the main network is much higherV2, average consumption cost ratioV2more102%."

Although it seems the whole web is complainingUniswap V3Fees are too high, but from the first day trading performance,Uniswap V3Innovative measures to "concentrate liquidity" have brought it a good market response.

-Uniswap v3The liquidity provider can set up multiple liquidity combinations of intervals in the same pool and aggregate them into an order book. For example,ETH / DAIIn the poolLPYou can choose toThe $100Assigned to$1000 - $2000Price range and will be additional$50Assigned to$1500 - $1750Price range.

-Concentrated liquidity can provide greater trading depth,Uniswap V3Support the lowest0.02%The interval setting. But the opposite is to pay moreGas.

-Active liquidity, if the price of an asset traded in a particular liquidity pool changes toLPOut of the price range,LPThe liquidity would be effectively removed from the pool, stopping earning fees. And when that happens,LPThey end up holding only one of these assets.

On the one hand, active liquidity is good for making up for fickle losses, but on the other hand, it also means that traders need more flexible trading strategies, which undoubtedly increases the entry threshold to participate in trading.

As of press time of Running Finance,Uniswap V3The top four pools with lock capacity are respectivelyUSDC/ETH.UNI/ETH, & have spentETH/USDTandWBTH/ETN.

And you can see that after each pair of transactions it's showing the corresponding rate. This isV3Another new feature of the upgrade-Multiple rates.

In contrast toV2Flat rate,V3allowLPsWhen adding liquidity to assets with different attributes, different rates are selected, respectively0.05%.0.3%As well as1%. Low risk transactions such as stablecoin can choose a lower fee rate, while high risk transactions of non-stablecoin can choose a higher fee rate, compared to the stable currencyV2Flat rate,V3More incentives for liquidity providers to take on higher risks. Meanwhile, for currencies with high price volatility,1%The rate can also achieve the purpose of reducing variable losses.

In addition,Uniswap V3Also joined theLPtheNFTThe fees for its centralized liquidity, range orders and flexibility are all marked inNFTIn the. At present,Uniswap V3theNFTNow onlineOpenSea.

Uniswap v2Around the  "X * y = k"In the constant market maker model, each user must follow a "passive market making strategy," which represents a certain amount of "fickle loss."

Uniswap V3By marking the liquidity position atNFTthrough  VisorVaults provide users with "irreplaceable liquidity". Users can baseLP NFTExperiment with different revenue rewards, including: earning rewards from liquid mining, trading income-generating assets to others, and locking up deposits for lending rewards.

Taken together,Uniswap V3Core centralized liquidity is essentially a customizationAMMThe form of innovation is more diversified financial services.

Uniswap V3 VS CEX

theUniswap V3Version online, not only onDEXThe field is a very disruptive innovation, and it also has a certain degree of impact on the traditional centralized exchange.

Running finance and economicsUniswap V3The innovative nature of the version is contrasted with that of a decentralized exchange, as shown below:

conclusion

The essence of finance is the accommodation of funds.DeFiDecentralized finance has the characteristics of openness, security and other characteristics that centralized finance does not have, but it cannot be separated from the fundamental needs of financing.

Uniswap V3The resulting high utilization of funds is the current stageDeFiThe best performance of sector finance, while not limited to trading, but endowed with a more diversified financial form, this is the impactDeFiThe development of the field has an extremely important impact. But operations based on the chain need to match the corresponding configuration of the underlying technical infrastructure, traffic congestion,GasCost becomes the key problem that urgently needs to be solved. We could have gone fromUniswap V3To see more possibilities for future financial development,Uniswap V3Set off the next roundDeFiThe upsurge of time, believe inLayer2After the deployment is complete.

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