Can Uniswap v3 Help Alleviate the Ethereum Gas Crisis? – BeInCrypto

Can Uniswap v3 Help Alleviate the Ethereum Gas Crisis? – BeInCrypto

The long-awaited official announcement on the launch of Uniswap version 3 has finally arrived. However, it dashed hopes for vast improvements in transaction costs and speeds.

Following a teaser posted on March 23, the team behind the world’s most popular decentralized exchange, Uniswap, has finally released details on the specifications of version 3.

The mainnet launch is scheduled for May 5. Layer 2 scaling powered by Optimism rollups will follow.  

Uniswap is currently the crypto industry’s top gas guzzler. The exchange has chewed through $2 million in fees over the past 30 days according to ETH Gas Station. The new iteration will hopefully alleviate these issues, though it cannot tackle the problem directly.

Uniswap v3 Under The Hood

The recently revealed specifications stated that there will be some improvement in gas prices. However, gas costs won’t be fully reduced until Layer 2 scaling is rolled out at a later date. So in short, do not expect any respite from those painful transaction costs.

What it did state is that v3 introduces something called “concentrated liquidity”. This gives individual liquidity providers “granular control” over price ranges for their allocated capital. Positions are aggregated together into a single pool, forming one combined curve for users to trade against.

“LPs can provide