The UNISWAP V3 has also been quite sophisticated with the interface, and the speed was also improved. The gas ratio of ETH ERC-20 chain is lowered and the speed is improved, but the speed of Uniswap Protocol seems to be faster.
Uniswap was an innovative Defi Leader and has been upgrading once again while showing leading Concept and technology. If this progress is engaged in the development of this advance chain, it can be a stronger DEFI.
The new concept applied to Uniswap V3 is Concentrated Liquidity. This allows you to select the range and depth of the liquidity supply. If you properly predict the changes in the market, you can maximize your revenue through fluidity. In other words, the fluidity that was supplied in conventional is supplying liquidity without constraints in all price fluctuations.
However, in V3, you can supply liquidity only in certain pricing sections. You can focus more funds in that section to supply liquidity only in certain sections. This seems to be a fluidity depth. You can expect more investment revenue by focusing on the price fluctuation section that you expect to be the funds that you do not supply. If you are out of the section you specify, the liquidity is no longer supplying.
A large number of DEFIs derived from a typical conventional EUT-swap initial code supplied each token at a rate of 50:50 to generate LP and supplied fluidity. UNISWAP V3 allows you to adjust these liquidity supply percentages. VSWAP, DODOSWAP, etc. applied a free liquidity supply that is not masquered at 50:50 percentage, but these asymmetric supplies have rather offered the hackers to the hackers.
UNISWAP V3 applies CONCENTRATED LIQUIDITY to create fewer capitals in case of V2 Version to create the same level of Liquidity Depth. In other words, the amount of capital to be introduced while implementing the same Liquidity Depth is smaller, less Risk exposure. With saved input capital, you can enhance the Liquidity Depth of the price section you think, or you can invest in another investor.
Concentrated Liquidity has a license for two years, so other DEFI can not be applied. These progress expect to be a substantial stimulus and pressure to other DEFIs, and other DEFIs will have an innovative technology to have an innovative technology. The first concept of V3 applied to the first time, it is not accustomed to it yet, so it seems to be a little more studying and accustomed.