Uniswap v3 (Ethereum)

What Is Uniswap?

Uniswap stands as one of the most renowned decentralized cryptocurrency exchanges (DEXs), with its inception dating back to November 2018. It played a pioneering role in introducing the automated market maker (AMM) model, in contrast to the traditional order book-based approach used by conventional exchanges. Operating on the Ethereum blockchain, Uniswap relies on a set of smart contracts to facilitate secure ERC-20 token swaps among users.

The core characteristic of this protocol is its decentralized nature, signifying the absence of a single centralized entity overseeing and operating the exchange. Instead, transactions occur in a peer-to-peer (P2P) fashion. Furthermore, Uniswap has made significant efforts to address the liquidity challenges commonly encountered on other exchanges. Uniswap V3, the third iteration of the protocol, comes equipped with enhancements designed to improve compensation, as well as offer more control and flexibility to individual Liquidity Providers (LPs). It is noteworthy that Uniswap V3 plays a substantial role in driving over 46.5% of the total trading volume in decentralized exchanges (DEXs). The protocol reached a noteworthy milestone by achieving a cumulative lifetime trading volume of $1 trillion in May 2022.

Who Is the Founder of Uniswap V3

Uniswap owes its existence to the vision of Hayden Adams, an alumnus of Stony Brook University and a former mechanical engineer at Siemens. Inspired by a blog post and Reddit discussion initiated by Vitalik Buterin, Adams received a grant from the Ethereum Foundation, ultimately leading to the protocol's launch in November 2018. Notably, Uniswap Labs secured a seed round investment from Paradigm and, in August 2020, secured $11 million in its Series A funding round, with participation from Andreessen Horowitz.

Uniswap V3 was introduced in May 2021, marking its release nearly 2.5 years after the initial version and one year following the launch of Uniswap V2.

Where Is Uniswap Located?

Uniswap Labs, the entity behind the development of the Uniswap protocol and interface, is situated in New York City. As a decentralized finance (DeFi) protocol, it remains accessible worldwide, and available to anyone with internet connectivity. However, geographical restrictions apply, with Uniswap banning access from ten countries as of July 2022. The list of excluded nations includes Belarus, Cuba, Iran, North Korea, Syria, Côte d'Ivoire, Liberia, Sudan, Zimbabwe, Iraq, and Iran.

What Coins Can Be Traded on Uniswap?

Uniswap, being a decentralized peer-to-peer protocol, allows any user to list a token on the platform. Prominent trading pairs presently encompass USDC, Wrapped BTC, WETH, and DAI, among others.

How Much Are Uniswap V3 Fees?

Uniswap V3 introduces liquidity providers to three initial fee levels: 0.05%, 0.30%, and 1%. It is worth noting that additional fee levels may be incorporated through the UNI governance proposal process.

Is It Possible To Use Leverage or Margin Trading on Uniswap?

Uniswap V3, in its current configuration, does not offer direct support for leverage or margin trading on its platform.