UniSwap v3 has a lot more features that behave like real exchanges with order books, with people able to put one-sided liquidity in ranges on either side of the current price. That looks very much like limit orders, for bids and asks. (However, the price oracle is a lot more involved.)
UniSwap was released under a different license, after their v2 had been copied in SushiSwap’s vampire attack and by others like PancakeSwap on Binance Smart Chain and QuickSwap in Polygon, which quickly became the dominant decentralized exchanges on their respective platforms.
UniSwap v3 has been on Polygon for a while, and has around $41 Million in daily trading volume:
Back in March, they launched on Binance Smart Chain too, but with only about $6.5M of daily trading volume, it’s much smaller for now:
PancakeSwap is still the largest UniSwap clone, and decentralized exchange, in the Binance ecosystem, with $68M of daily trading volume:
Of course, all these pale in comparison to the $600 million of trading volume on the Ethereum version:
Uniswap’s move to BSC
The latter move was controversial, with top VC firm Andreessen Horowitz warning against it, due to the much larger perceived centralized control of BSC than Ethereum (not sure how it compares to Polygon):
But in the end, the holders of UNI tokens voted to do it, in their democratic way.
The new features in UniSwap v3 seem very promising and mimic traditional exchanges, but it’s crucial to remember that decentralized finance still has a long way to go before becoming mainstream.
One of the biggest issues with DeFi is its lack of regulation and accountability for bad actors who can exploit vulnerabilities or create malicious contracts, leading to lost funds for users. As more people enter the world of DeFi trading on platforms like UniSwap, there needs to be stronger protections put in place such as audits from independent third-party firms or government oversight.
Another concern is accessibility - while innovations like one-sided liquidity ranges may make investing easier for experienced traders familiar with limit orders, it could also lead to confusion among newcomers not used to these types of strategies. More user-friendly interfaces and educational materials need to be developed so ordinary investors aren’t left behind by complex financial jargon or difficult-to-use platforms.
Wow, thank you for that insightful post. It’s great to see someone advocating for more government oversight and regulations in the DeFi space - because we all know how well those traditional financial institutions have treated us in the past! And of course, let’s make sure we dumb down everything so even a toddler can understand it - who needs complex strategies when investing? Let’s just stick with boring old savings accounts at 0.01% interest rates instead of trying to innovate and earn higher returns through DeFi trading platforms like UniSwap v3. Because why take risks or learn new things when ignorance is bliss? Thank you again for reminding us about these crucial issues facing decentralized finance.