The evolutions or updates of certain blockchains have a direct impact on the price of cryptos. For example, the price of Ethereum was boosted by the arrival of its V2. Precisely, a discreet crypto of the world’s top 10 is about to welcome an important update …
Uniswap, a major player in DeFi
The uniswap crypto is relatively low-key on the news front. Still, make no mistake, it’s a crypto to know. With a capitalization of more than 15.4 billion euros, Uniswap has just entered the world’s top 10 for cryptos. Uniswap was created in 2017 by Hayden Adams when he lost his job at Siemens.
To put it simply, Uniswap is a decentralized trading platform that runs on the Ethereum blockchain. Uniswap is one of the applications of decentralized finance or DeFi.
Let’s take an example to understand the main utility of Uniswap. To exchange Bitcoin for Cardano, the most conventional way is to go to an exchange. These trading platforms do not operate in a decentralized manner, which is why you have to pay fees. Uniswap is an application that allows thepeer-to-peer crypto exchange (“swap”).
To enable these transactions in a decentralized manner, Uniswap sets up “liquidity pools”. These pools are a way to collect passive income. Some users fund these pools (called LP or “Liquidity Provider”) and receive a certain percentage during each trade in proportion to the amount they have invested.
Uniswap version 3 scheduled for May 05, 2021!
Uniswap hosted a version 2 in May 2020. Following this development, token exchanges no longer passed through the Ethereum box. Thus, a DAI could be exchanged directly against a USDC whereas before it would have had to be converted first into ETH.
Then, in September 2020, Uniswap launched its governance token, UNI. The release of v2 has propelled Uniswap as one of the most well-known applications on the Ethereum blockchain. Its transaction volume is now comparable to that of established exchanges.
But the biggest update is yet to come, and it’s coming soon! As announced on March 23, 2021, Uniswap version 3 is expected to launch on May 5, 2021! The “concentrated liquidity” function is the main evolution embedded in v3. Basically, it will allow LPs to tie up less funds in the pools while receiving the same level of gain. V3 will therefore improve the efficiency of the Uniswap network and make it even more attractive.
To date, Uniswap is already the 4th most important application of DeFi, with a total capitalization of $ 6.7 billion. There is no doubt that the Uniswap course should take full advantage of the release of its v3. On the way to the podium?