Review on Uniswap (V3) by Patejl Patejlson

After we have been forced to navigate between the bumpy ride in the waters of centralized exchanges were all of those eventually got into troubles (from low profits to bankruptcy), I wanted to find a better solution which would enhance the decentralize principle of blockchains and cryptocurrencies and not only pretend this principle and use the cryptocurrencies for marketing purposes (that is and was the common strategy between centralized exchanges). One of the best contender in the space according the stats (volume or other) is still Uniswap which is pushing innovation to better serve its customer but it is closely watched and it has been catched up by the PancakeSwap. The main differentiation between decentralized exchanges are the supported blockchains what is usually connected with the speed (transactions per seconds) and the transaction fees. Uniswap was originaly developed on the ethereum blockchain where the fees are quite high that is the reason for the demand for using PancakeSwap which is built on top of the Binance Smart Chain. But here comes Uniswap with its third version which has added support for second layers of ethereum (Optimism, Arbitrum), Polygon but even Binance Smart Chain too. This has lowered fees and higher speed.





The main reason why I like the the Uniswap in general is the option to provide liquidity which is quite great strategy with minimal risk how to get interesting yield. With its third version Uniswap improved its liquidity pools which are free to use and offers a great opportunity how to maximaze your profit by providing option to set up your own price range (low and max price of the two cryptocurrencies in the pool). If the pair of cryptocurrencies is traded within the price range you are earning part of the transaction fees, if it is outside the range you are getting nothing. Pretty straightforward.



Your provided liquidity, this is quite novel, is represented by the NFT with exact characteristic (price range and amount) you have chosen. If you want to provide more liquidity you will need to choose the range again and new NFT will be minted for you. As it is quite common the protocol has minted their own governance token - UNI which I do not personally like but it seems as one of the better investments among the governance tokens of DeFi protocols.





Overall if you want to really got into the crypto space the third version of Uniswap is a great place to be and use.