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Uniswap v3 (Ethereum)

About Uniswap v3 (Ethereum)

What is Uniswap?

Launched in 2018, Uniswap is one of the most popular decentralized exchanges (DEX) for cryptocurrencies. The exchange pioneered the introduction of the Automated Market Maker (AMM) model to replace the traditional order book model still used in other exchanges. uniswap operates on the ethereum blockchain, with multiple smart contracts to securely exchange ERC-20 tokens between users. The decentralized nature of the protocol allows for no single centralized authority to operate and manage the exchange; in contrast, exchanges are also conducted on a peer-to-peer (P2P) basis. Uniswap V3 is the third version of the protocol, which addresses the liquidity issues associated with other exchanges. Uniswap V3 accounts for 46.5% of all decentralized exchange volume, and in May 2022, the protocol set a record for cumulative volume of $1 trillion.

Who are the founders of Uniswap V3?

Hayden Adams founded Uniswap after attending Stony Brook (State University of New York at Stony Brook) and working as a mechanical engineer at Siemens. Uniswap Labs raised a seed round of funding from Paradigm, followed by an $11 million Series A round led by Andreessen Horowitz in August 2020. Uniswap V3 was released in May 2021, almost 2.5 years after the first release and a year after the release of Uniswap V2.

Where is Uniswap located?

Uniswap Labs, which develops the Uniswap protocol and Uniswap interface, is located in New York City, USA. As a decentralized financial (DeFi) protocol, it can be used by any individual with Internet access worldwide. However, there are some restrictions for users in some countries. As of July 2022, Uniswap has banned users in 10 countries from using its protocol. These countries include: Belarus, Cuba, Iran, North Korea, Syria, Cote d'Ivoire, Liberia, Sudan, Zimbabwe, and Iraq.

What cryptocurrencies can be traded on Uniswap?

Since it is a decentralized peer-to-peer protocol, anyone can rack any token on Uniswap. At the time of writing, the most popular pairs include USDC, Wrapped BTC, WETH, and DAI.

What are the fees for Uniswap V3?

Uniswap V3's liquidity providers are able to start building liquidity pools with three fee tiers of 0.05%, 0.30%, and 1%. Additional fee tiers may be added through the UNI governance proposal.

Can I use leverage or margin trading on Uniswap?

The Uniswap V3 platform does not offer leverage or margin trading.