[Ethereum] - All About Eve (i.e: USDC-WETH 100 1)
Choose 1 pool on Uniswap V3 where one of the token pair is USDC. Show the daily volume of transactions where USDC was swapped for the other token. Show the daily volume of transactions where the token was swapped for USDC. Show the aggregate daily total swap volume of your chosen pool. Show the daily number of transactions that used this pool.
📋 What is Uniswap?
Uniswap, one of the world’s most popular DEXs, is one of the leaders in the race to surpass centralized institutions. After getting to one of the highest TVLs among all DeFi projects, the Uniswap team launched a new version of this famous DEX — Uniswap v3.
Uniswap is a protocol on Ethereum for swapping ERC20 tokens. Unlike most exchanges, which are designed to take fees, Uniswap is designed to function as a public good — a tool for the community to trade tokens without platform fees or middlemen. Also unlike most exchanges, which match buyers and sellers to determine prices and execute trades, Uniswap uses a simple math equation and pools of tokens and ETH to do the same job.
📋 What is Uniswap V3?
Uniswap v3 is the forthcoming new and improved DEX that will run on the Ethereum blockchain and be powered by the same automated market maker (AMM) model as v2 but loaded with new developments aimed at maximizing returns for traders and liquidity providers, minimizing price slippage, and managing downside risks.
Why Did Uniswap Launch Another Version?
Uniswap has been a victim of its own success, receiving heavy criticism that its popularity is slowing down the Ethereum network and causing transaction gas fees to skyrocket. Also, Uniswap has seen the repeated exploitation and copying of its code by competitors like Sushiswap and Binance Smart Chain.
Uniswap v3 boosts the efficiency of its AMM model, which is one of the most significant features to observe when comparing DEXs. Through the introduction of a concentrated liquidity concept, liquidity providers have the ability to supply their assets in a definite price range for which they deposit liquidity. Moreover, they have given tier-based rewards based on the degree of risk they are taking on in any particular pool. This can incentivize more liquidity providers to participate as the rewards would potentially help offset some of their potential losses in supplying liquidity to a wider price range.
The combination of these features enhanced the efficiency of the AMM model that supports Uniswap v3’s DEX, which would benefit traders thanks to more liquidity. Furthermore, liquidity providers can also possibly gain higher returns on their capital with as much as 4000x efficiency.
What’s New in Uniswap V3?
Uniswap v3 launched on May 5, 2021, on the Ethereum mainnet. There are the main feature updates that were introduced in Uniswap V3:
- More Decentralization
- Concentrated liquidity
- Better Security
- New fee tiers
- Oracle feed developments
- Range Orders
- Non-Fungible Liquidity
- License
These features will work together in achieving better capital efficiency for the platform’s traders and greater risk management for liquidity providers.
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