24 March

“Uniswap, the leading decentralized exchange (DEX) on Ethereum and a centerpiece of the $42 billion decentralized finance (DeFi) sector, is releasing its third iteration. Uniswap v3 is expected to launch on mainnet on May 5. Notably, Uniswap is eyeing an integration “soon after” with Ethereum throughput booster Optimism.

The new version promises greater ‘up to [4,000 times] capital efficiency relative to Uniswap v2.’

The key change, as outlined in the new white paper, is what Uniswap is calling “concentrated liquidity.” Concentrated liquidity allows liquidity providers (LP) to set minimum and maximum prices on their portion of any given pool.

The new version further allows different pools to be created with different fees. Up to now, all trades in all Uniswap pools have had a 0.03% fee for trading.

While this fee historically seems to have worked well enough for many tokens, it is likely too high for some pools (such as pools between two stablecoins), and likely too low for others (such as pools that include highly volatile or rarely traded tokens).

A key change for the composability of Uniswap may be in its removal of native ERC-20 tokens to represent LP positions. The blog post promises this actually increases flexibility for users:

Over time we expect increasingly sophisticated strategies to be tokenized, making it possible for LPs to participate while maintaining a passive user experience. This could include multi-positions, auto-rebalancing to concentrate around the market price, fee reinvestment, lending, and more.

Lastly, the post describes a major change to licensing this new version:

The license limits use of the v3 source code in a commercial or production setting for up to two years, at which point it will convert to a GPL license into perpetuity.”

See Also: Uniswap V3 Introduces New License to Spoil Future SUSHIs
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Bitcoin’s “reserve risk” metric measures the risk-reward ratio of investment based on long-term holders’ confidence relative to the price at any given point of time, and is currently seen at 0.008. That’s well short of highs above 0.02 seen during the bull market frenzies of December 2017, December 2013, and June 2011.

The low current level suggests confidence is still high relative to the cryptocurrency’s price. The bullish signal is consistent with the positive picture painted by other on-chain indicators, such as the market value relative to realized value ratio.

The incentive for long-term holders to sell is still relatively low when compared to past bull markets. This metric suggests the current bull market still has a long way to run in terms of price increases.”

See Also: Bitcoin Transfer Worth $806M Might Reveal Big Institutional Purchase

A bitcoin ETF would likely oust Grayscale’s Bitcoin Trust (GBTC) product from its dominant position by offering investors far lower fees and nixing the fund’s premium/discount discrepancies, negatives that have spooked some advisories from touching GBTC.

There have been so many shares created that that has put some selling pressure on the stock itself, but ultimately [I] do not foresee this as a product issue.

Institutional investors continue to line up, he said, predicting the market remains in the “early days” of a corporate bitcoin adoption trend that may accelerate through 2021.”

See Also: Institutional managers hold a record $57B worth of crypto

“The Hong Kong-based exchange announced the launch Tuesday, claiming it will be the ‘world’s largest and most user-friendly NFT platform.’ The platform will be invite-only and will feature collaborations between mainstream and digital artists.”

Unsecured commercial-grade lending is one step closer to making its debut in decentralized finance (DeFi). Algorithmic credit risk protocol Teller Finance’s limited alpha mainnet is now live on the Ethereum blockchain.

Teller Finance has worked with fintech giant Plaid to integrate real-time credit scores into DeFi from over 2,000 financial services. The protocol plans on decentralizing its governance over time as data providers begin natively lending through the application.

Teller is focused on enabling credit risk assessment for DeFi. We see ourselves becoming a protocol for other DeFi markets to launch atop or integrate. Maple Finance and Aave are partners in our eyes, who can leverage Teller to bring data based risk assessment into their markets.”

See Also: Trading Platform Abra Will Now Lend Fiat Money for Crypto Collateral

“Self-titled as a “lightweight,” Mina has a fixed blockchain size of 22 kilobytes, which it maintains by discarding blocks as they elapse. Usually blockchains retain every block mined. Its unorthodox design employs a technology called “zk-SNARKS,” most widely known for its use by Zcash, to preserve its transaction record without saving every block.

Through its SNARK-powered applications – or “Snapps” – Mina aims to ‘bring new possibilities for internet privacy and data security.'”

Justin Drake on Ethereum Crypto-economics

“The crypto asset could be used as a “neutral bridge” between different currencies, Ripple says. A neutral bridge currency would be needed to support liquidity markets to allow for effective movement of value between different CBDCs.

Ripple looks to be pitching itself to central banks researching and developing CBDCs amid its ongoing lawsuit with the U.S. Securities and Exchanges Commission (SEC) over its allegedly illegal sales of XRP.”