Since June of this year, the speed of Defi has been increasing rapidly. In this process, lending, DEX and liquidity mining developed most rapidly. The number of users of Defi has increased from less than 200000 at the beginning of June to more than 400000 now. The amount of assets locked by Defi has increased from less than US $1 billion at the beginning of June to more than US $8 billion now. The rapid development of Uniswap, balancer and curve is particularly remarkable.
However, with the influx of more users, the WiFi products will be further optimized, and there will be more and more competitors, especially in the DEX field. Just like sushi, more and more projects will enter the field of collective advantage.
The blank position of Uniswap
Although Uniswap is not the first project to promote AMM mode, it is the first project to successfully implement AMM mode. However, Uniswap also has some problems. It has room for iterative optimization in user experience and incentive mechanism. This leaves an opportunity for other latecomers. At the beginning, a small number of core users in the field of encryption entered the Defi, and they had no barriers to the use of wallet and DEX transaction process.
However, for most of the new users, there are some problems in the current DEX experience. Currently, about 1% of the users are profi users, but the transaction volume ratio of DEX / CEX has exceeded 6%. As more and more new users enter, some contradictions in user experience will become increasingly obvious. CEX user experience is different from DEX user experience, which leads to the inconvenience of users who are used to CEX experience when using DEX. For example, there are no price limit orders, transaction history, Real-time charts, and so on. Not only that, there may be transaction congestion, frequent transaction failures, and high transaction costs.
In addition, many new users don't even understand the problem of DEX transaction slip point, which may cause great losses. At present, DEX mainly occurs in Ethereum, but other chain assets will also participate in the Defi, such as bitcoin, which also begins to enter Ethereum for circulation through the token BTC mode. There are more other chains, such as Boca, cosmos and Solana, which are also building Defi products. How to circulate and trade assets across different chains is also a problem to be considered in the future.
Introduction of transaction analysis chart
At present, Uniswap has no real-time transaction analysis chart, such as depth chart, K-line chart, transaction history, etc. It is difficult for traders to make trading decisions through these charts. Uniswap V3 provides a trading chart similar to the traditional CEX on the trading interface, which is convenient for traders to make trading decisions. They can view all order books, K-line chart, depth chart, fluctuation range, turnover, etc.
In a word, Uniswap V3 is a DEX based on the decentralized AMM mode of smart contract operation. It uses Uniswap for reference in the market making mode. However, it introduces the order book mode, transaction chart and other tools that Uniswap does not have at present. At the same time, its order book mode is not the offline matching mode often used by DEX, but the online matching and online settlement mode.
Gas cost and security
According to the information released by Uniswap V3, it has been audited by three security companies, Manwu, paidun and Chengdu Lianan. In addition, Uniswap V3 also pays attention to gas expense consumption. After adding the on chain order book mode, according to the disclosure of its audit company, gas expense consumption is still lower than Uniswap. In view of the current transaction costs are very expensive, if we can reduce the cost of gas, it is quite attractive to users.
V3 of Uniswap governance
Uniswap V3 supports community governance. The on Chain Governance of Uniswap V3 needs token. First of all, enough users (more than 1% of the total amount of tokens) can initiate a proposal, and any user holding tokens can vote for or against the proposal.
The current proposals support the pure text proposal, the community fund spending proposal, the transaction fee rate modification proposal, and the pair contract upgrade proposal. The voting process will be managed through the governance contract. Once it is passed, the governance contract will automatically perform the corresponding operation.
According to the white paper of Uniswap V3, after the governance token is created, the subsequent token release will be carried out according to the lock in rule. The community construction cost proposal also needs to be voted by the community before it can get token from the governance contract. This includes the follow-up mining incentive plan, community construction, project cooperation, etc.
In addition to participating in governance, transaction costs can also be captured. In the transaction of Uniswap V3, it will charge a fixed proportion of transaction fees to taker, while maker does not have to pay transaction fees. Of the fees charged, 60% will be allocated to liquidity providers and 40% will be used for the repurchase and destruction of tokens. Buyback and destruction are automatically completed through token buyback and destruction contracts.
In terms of liquidity, Uniswap V3 has a long way to go, but its development is amazing.
Uniswap V3 has developed a decentralized trading protocol based on Ethereum. Through the automatic market maker mode, it does not need to rely on the price information flow of the oracle. It has developed from an experimental small project to now taking shape, which can be regarded as a firm foothold.
It not only provides traders with token trading without permission and a simple user experience, but also provides liquidity providers with the opportunity to capture value. Finally, because Uniswap V3 does not need to be licensed, it has the opportunity to become one of the important Legos in the Defi world and provide assistance for the development of the whole Defi field.
The improvement and innovation of Uniswap V3 has driven the whole field of Defi to a new height
January 07, 2021 at 05:37 AM EST