UniSwap Protocol are working towards creating a huge impact in the future of finance.  Institutional Capital is already a happening in the world of cryptocurrencies, particularly the list of top 10 cryptocurrencies.  There are potential projects which are below the 10 coins doing a great job too and Uniswap is one of them.

It is well known that a majority of the DeFi projects are based on the Ethereum blockchain and there are scaling issues on the network which are awaiting layer 2 upgrades to deal with the scaling issues effectively.

DeFi projects become less interesting to participants when they land up paying huge costs to move assets.  While ETH is working its way to bring down transaction costs by innovating to deal with network congestion, projects are individually doing their own stuff to come up with solutions to bring down the transaction costs.

The Uniswap V3 Upgrade, which is the largest decentralized exchange (DEX) is set to launch its upgraded version 3 later in 2021.

The exchange has a total locked value of $3.5 billion in version 2, but it is suffering from fees and slippage issues, which is more than what users would tolerate.

The new V3 protocol that is set to be released in 2021 will solve slippage and capital efficiency issues.

Looking back into history, Hayden Adams stated, In 2019: Uniswap V1 have proven that AMMs will be able to compete with traditional exchanges. In 2020: Uniswap V2 will prove AMMs can do things traditional exchanges cannot.  In 2021: Uniswap V3 will face slippage and capital efficiency head on to prove AMMs can outcompete traditional exchanges on all fronts.

While there are no official details about how UniSwap will deal with fees and slippage issues, some of them have stated that V3 will integrate with Layer 2 scaling solutions to improve the issues. It is expected that several other DeFi projects, which are based on Ethereum will also follow similar upgrades.

Client money vested to major investors is now making it to the cryptocurrency market.  The fund managers are super cautious than retail investors and it is expected for more of such investment to pour in. Very soon DeFi might onboard the rest of the world if it is executed strategically.  The decentralized future of trading is already unstoppable and now in the line is DeFi.

Trading and automated liquidity provision on Ethereum is the identity of the Uniswap protocol. Anyone who has a keen interested in helping further the future of decentralized finance will find Uniswap Protocol worth a look.