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Story: Uniswap v3 With Improved Capital Efficiency and Fine-Tuned Control to Liquidity Providers

By Steven Anderson

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Uniswap V3 is the most flexible and capital efficient AMM.  The Mainnet launch is scheduled for May 5, 2021.

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Those who need a detailed technical overview should look in to Uniswap v3 Core White paper by Hayden Adams, Noah Zinsmeister, Moody Salem, River Keefer and Dan Robinson.

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The abstract of the White paper reads thus:  Uniswap v3 is a noncustodial automated market maker implemented for the Ethereum Virtual Machine.

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Of note, The Uniswap v2 core contracts are non-upgradeable by de-sign.  Thus, Uniswap v3 is implemented as an entirely new set of contract.

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Some of the parameters, which are controlled by governance are clearly described in the White Paper.

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To know more about the difference between v2 and v3 users need to refer to the information on significant new features like concentrated liquidity, flexible fees, protocol fee…

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Another important feature to make note of is the range orders.  As published in the White Paper, “Positions on very small ranges act similarly to limit orders—if the range…

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Several architectural changes are also made to V3, some of which are independent improvements and some others are by the inclusion of concentrated liquidity.

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There are also three significant changes to the time-weighted average price (TWAP) oracle.  The need for users of the oracle to track previous values of the accumulator…

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Elaborate details are available in the White paper.  The White paper reflects the current opinions of the authors and is not made on behalf of Uniswap Labs, Paradigm, or…

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