Uniswap v4 Whitepaper Released: A New Era of Decentralized Exchange Innovation

The Uniswap v4 whitepaper was released on June 13, 2023, and it represents a major step forward for the decentralized exchange (DEX) protocol. Uniswap v4 introduces a number of new features, including:

Concentrated liquidity: LPs can now deploy liquidity across a range of prices, rather than just a single price. This allows them to earn more fees and reduce impermanent loss.

Custom hooks: Developers can now add custom logic to Uniswap pools. This could be used to implement new features, such as MEV-capture or price oracles.

Single contract: All Uniswap pools are now deployed in a single contract. This reduces gas costs and makes it easier for integrators to build on top of Uniswap.

The release of Uniswap v4 is a major milestone for the DEX protocol. It opens up a new world of possibilities for innovation and makes Uniswap even more powerful and versatile.

Concentrated Liquidity

One of the most significant changes in Uniswap v4 is the introduction of concentrated liquidity. In previous versions of Uniswap, LPs could only deploy liquidity at a single price. This meant that they were exposed to impermanent loss if the price of the asset they were providing liquidity for moved significantly.

In Uniswap v4, LPs can now deploy liquidity across a range of prices. This is done by specifying a range of prices and a maximum amount of liquidity that they are willing to provide. The protocol will then automatically distribute the LP's liquidity across the specified range of prices.

Concentrated liquidity offers a number of benefits for LPs. First, it allows them to earn more fees. This is because the protocol will always charge the lowest possible fee for a swap. Second, it can help to reduce impermanent loss. This is because LPs are no longer exposed to the full range of price movements.

Custom Hooks

Another major change in Uniswap v4 is the introduction of custom hooks. Hooks are small pieces of code that can be added to Uniswap pools. They can be used to implement new features, such as MEV-capture or price oracles.

MEV stands for miner extractable value. It is the profit that miners can earn by frontrunning trades on DEXes. Uniswap v4's custom hooks can be used to implement MEV-capture strategies. This means that LPs can earn a share of the MEV that is extracted by miners.

Price oracles are used to determine the price of an asset. They are a critical part of any DEX. Uniswap v4's custom hooks can be used to implement price oracles. This means that LPs can provide liquidity to pools that are priced using their own oracles.

Single Contract

All Uniswap pools in v4 are deployed in a single contract. This reduces gas costs and makes it easier for integrators to build on top of Uniswap.

Gas is the fee that is paid to miners to process transactions on Ethereum. By deploying all pools in a single contract, Uniswap v4 can reduce gas costs by up to 50%. This is because miners only need to process a single transaction to update all pools.

The single contract design also makes it easier for integrators to build on top of Uniswap. This is because they can interact with all pools using a single API.

Conclusion

The release of Uniswap v4 is a major milestone for the DEX protocol. It opens up a new world of possibilities for innovation and makes Uniswap even more powerful and versatile.

#UNISWAP #Miner #Liquidity #Binance #pepe

Arbitrum [ARB] AirDrop has benefited the protocol and its users, but it has also benefited other protocols such as Uniswap [UNI]. According to Uniswap’s 28 March tweet, 92% of all ARB holders used Uniswap to swap their received token rather than other DEXs. This revealed that the Uniswap protocol was preferred by the majority of crypto community members.

UNI experienced a similar rise of activity. According to Santiment data, the number of active addresses using UNI has increased in recent days, while its price has continued to fall. Santiment indicated that this was a bullish divergence and that the token’s price may grow.

However, traders expecting the UNI price to rise should be wary of the dropping long/short ratio, which indicates a decrease in the number of long-term holders. Short-term token holders are more inclined to sell their stakes when prices rise, which can drive the token’s price down in the short run.

Also, the MVRV ratio of UNI has risen in recent days, implying that many investors may soon turn profitable and that selling pressure on the coin may intensify. Even if UNI may have a bright future, the Uniswap protocol should be improved. According to Token Terminal data, Uniswap fees have dropped by 29% in the previous few months, despite an increase in active users on the protocol.

The large quantity of bot activity on the Uniswap protocol could explain the drop in fees collected. According to Dune Analytics, MEV bots accounted for 41.1% of total volume on the DEX. MEV bots can have a negative impact on the DEX by front-running transactions, which implies inserting their own transaction before another’s in order to profit from the price shift. This can result in the initial transaction failing or the trader receiving a lower-than-expected price, which can discourage trading on the DEX and undermine Uniswap’s image.

#ARB #ARBITRUM #UNISWAP #Binance #crypto2023

Pine Protocol recently announced the launch of its NFT Lending Platform on Polygon.

Polygon Labs released an official tweet to inform users about the launch. Polygon boasts the second-highest market cap when it comes to NFTs. Thus, the integration allows Pine Protocol to access Polygon’s 200 million+ wallets. At the same time, the collaboration boosts the value proposition of its existing collection.

Known for its NFT-based loan services, Pine Protocol acts as a decentralized non-custodial protocol. It allows borrowers and lenders to interact while allowing users to leverage NFTs as collateral.

However, on the other hand, Polygon allows Ethereum scaling solutions to power names like OpenSea, Uniswap, and Aave. It is for this reason that Pine Protocol aims to use the potential of every idle NFT for instant liquidity.

Ever since its beta release in 2022, Pine Protocol has facilitated more than 4 million dollars worth of NFT loans. It currently supports NFT loans for projects such as Bored Ape Yacht Club, Azuki, Doodles, etc.

Pine Protocol’s founder, Alex Ho, talked about the recent collaboration. According to Alex, Polygon NFTs possess the biggest market cap after Ethereum. Using Polygon to promote Pine Protocol’s operations will open the NFT lending market to 200 million+ wallets.

Similarly, the DeFi Head at Polygon, Hamzah Khan, has also praised the development. Hamzah stated that integrating Polygon with Pine Protocol will facilitate cost-effective and quick transactions. This will create a simplified and seamless network among NFT lenders and borrowers.

As the collaboration progresses, Pine Protocol will establish its position as a dual-sided decentralized non-custodial protocol. Polygon’s worldwide reach will assist the protocol in expanding its NFT asset-based loan transactions in a sustainable manner.

#POLYGON #ETH #UNISWAP #AAVE #Binance

It was the 1st of July 2020 when there were 44 million USD deposited assets in Uniswap liquidity pools, one of the most influential Defi exchanges in the market. At the moment of writing this, 23rd of October 2020, there is 2,95 BILLION dollars in assets. WTF?

Same time all the Defi (decentralized finance), there was 1.9 billion in all the defi space, and at this moment, there 12.49 billion. Growth numbers are colossal beyond comparison. Point being, on the 1st of June, Defi space was meaningless, but today, it cannot be passed unnoticed.

Are these numbers big enough for you to participate? I think you will, yes.

Defi space has grown exponentially this year, and it has become a significant player in the whole crypto market today. The downside of it can be that the gas prices have also grown to an all-time high up to 538 gwei on the 17th of September, now stabilized at around 63 gwei, which still is not cheap. At the beginning of June, it was about 30.

There is no end to this, and why should there be? It is very good for the cryptocurrency world and all crypto minded individuals. The benefits of Defi space exploding like this are numerous. There are exchanges, lending platforms, assets management, derivatives, and much more is coming. Imagination is the limit of the Defi space.

The profit margins of all the Defi platforms are huge at its best. For example, USDC stablecoin interest was over 63 % today, in the percent.finance. Where else you could even imagine anything like that. But like I said before, the gas prices are so high that, with a small investment, it is tough to get unusual high returns, even they are safe for you to invest. The sharpest edge with the highest profits moves to other pools relatively fast, in a matter of hours or days.

All the Defi space agreements are smart contracts, which means you cannot be conned or scammed. As you know, smart contracts only do what they are supposed to do. They cannot be modified or altered at all. The only person who can touch the money is the account holder, no one else. Everything else happens automatically, according to the contract. Smart contracts, of course, have to be audited, so you know there is nothing shady happening in that contract. You can check audits very quickly because they are shown and advertised by the platforms.

Many of the yield farming operations have promised skyrocketing high returns to those who invest, and countless people have invested millions to programs that haven’t been audited at all. The most known example of this was SushiSwap, which collected over 1 billion USD before it was audited. From my perspective, investing in this kind of projects is not investing at all, but gambling, pure and simple.

The Coingeckos year 2020 yield farming survey says that 79% of the farmers understand the risks involved in Yield farming. Still, over 40% of the farmers couldn’t read unaudited smart contracts, and 33% of those people don’t even know the term impermanent loss.

The question is, what is the best way for us to participate in this unbelievable growing decentralized finance market, is intriguing. My advice is to invest your money or crypto in audited, automatic harvesting pools. That way, it is very safe for you to support, which is, at least for me, the essential thing there is at the moment in the cryptocurrency world.

#UNISWAP #REXBOX #DEFI

$UNI

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Jun 16:

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#UNISWAP #LDO #AAVE #GOATMoments