Uniswap announced the launch date of the third version of the protocol

The launch of the third version of the leading non-custodial exchange Uniswap will take place on May 5.

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 Today we are thrilled to present a detailed overview of Uniswap v3, the most flexible and capital efficient AMM ever designed!

Mainnet launch is scheduled for May 5, with a scalable Optimism L2 deployment set to follow soon after https://t.co/NTekDxWVA8

– Uniswap Labs (@Uniswap) March 23, 2021

The developers have promised to implement a second level Optimism solution for scaling shortly after the release of the new version of DEX.

One of the major innovations of the new puncture is the Concentrated Liquidity positions.

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Uniswap v3’s groundbreaking new feature is Concentrated Liquidity positions

Rather than being required to allocate capital across the entire price spectrum from 0 to infinity, each LP is given full control over what price ranges they wish to provide liquidity to pic.twitter.com/AOCm340YI9

– Uniswap Labs (@Uniswap) March 23, 2021

“Instead of distributing capital across the entire price spectrum from 0 to infinity, each liquidity provider gets control over the price ranges at which it wants to provide liquidity,” the developers commented on the innovation.

For example, a market participant might decide to provide liquidity for Ethereum only if the cryptocurrency is trading in a range of, say, $ 1,800 to $ 2,000.

The developers are convinced that, thanks to the new approach, the activities of liquidity providers (LPs) can become more capital efficient. It can also help reduce slippage in trading, Uniswap said.

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 Concentrated Liquidity means LPs can earn the same amount of fees with just a fraction of the underlying capital, while keeping more of their total portfolio in desired assets!

Capital efficiency gains max out at 4000x for LPs adding liquidity to a 0.10% price range pic.twitter.com/aLUvBmbPGp

– Uniswap Labs (@Uniswap) March 23, 2021

In mid-May, it is planned to launch the Optimism solution, which will significantly increase platform scalability and reduce user transaction costs.

Another innovation in Uniswap v3 is a three-tier structure of commissions for liquidity providers (0.05%, 0.30% and 1%). LPs are expected to generate more commissions from pools with high volatility coins.

Hodlmonks previously reported that in anticipation of the launch of the new version of DEX, the number of searches for the word “uniswap” approached the records of the DeFi-boom .

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