Uniswap v3 Launched on Ethereum Testnets

Uniswap announced that smart contracts developed for v3 have been added to major test networks in Ethereum. Blueprints of Uniswap v3 can be accessed via Ropsten, Kovan, Rinkeby and Goerli.

Automated market maker Uniswap shared details of v3 last month. The incomplete version of v3, scheduled to open in May, can also be found on all four of the four major test networks in Ethereum.

4,000 fold improvement in capital efficiency

The new version of Uniswap will feature a feature called concentrated liquidation. This feature will give liquidity providers the opportunity to concentrate their capital on a certain price range.

This is expected to make the use of capital more efficient. In the post published on March 23 for Uniswap v3, it was announced that people can provide liquidity to get 4,000 times more efficiency from their capital.

The transaction fee mechanism will change

Uniswap v3 will bring with it three tiers of transaction fees: 0.05%, 0.30% and 1.00%. The transaction fee in Uniswap pools is currently operating at a standard rate of 0.03%.

The income received by the liquidity providers will thus vary depending on the level of risk taken.

Apart from these, the update, which will also include features such as the Business Source License, is expected to be implemented with mainnet on May 5th. The Uniswap team is planning to use Optimism technology “soon” after v3 is available.

Uniswap (UNI) has gained 10.6% in the last 24 hours and rose to $ 31.75, according to CoinGecko.

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