Uniswap v3 is on the way, definitely not miss out for the upcoming amazing features, concentrating your liquidity and much more

Uniswap has huge defi users with growing TVL over time. However, the congestion problem of Ethereum network leads to expensive gas fees which force many traders with small amount assets leave the Ethereum-based market. Now there is good news hearing from Uniswap. According to the official announcement, the L1 Ethereum mainnet of Uniswap v3 is supposed to be launched on May 5, and Layer 2 deployment will follow thereafter.

The most exciting feature that draws my attention is a brand-new flexible AMM design known as concentrated liquidity, which allows users to custom the price range of their liquidity. In other words, users narrow down the price of their paired tokens, they still provide the same liquidity depth as v2. The saved capital could therefore invest in other defi assets.

For example, we set the price range of ETH between $1209 and $2414 shown as following picture. If the capital required on v3 is $30,000, the capital required on v2 will be $188,970 to perform identically and earn equal fees. The above calculation is based on the official Uniswap documentation with ETH current price at $1820. Now you know how amazing this concentrated liquidity will be.

What if the price of paired token falls outside the range that the users set? The deposit liquidity will be removed from the pool and no longer to earn fees. However, the users could change the price range again or wait for market price to move back into their price range.

In addition to the core features mentioned above, v3 version of Uniswap also offers range orders, non-fungible liquidity, flexible fees and advanced Oracles.