Author: miix capital

Foreword

UNISWAP is a DEX -based AMM mechanism. It launched V3 in May 2021. It is expected to be launched after the DENCUN upgrade in 2024.UNISWAP’s status of the DEX track is continuously expanded and is not easy to shake. With the upgrade of Dencun and the V4 version, it is expected to have a good price performance.However, the number of Holder and Balance of Smart Money, as well as the chain behavior on the market business, shows that the possibility of UNI has a significant increase in the short term. It may require Dencun and then observe the specific chain situation.

1. Project overview

UNISWAP is a AMM -based DEX, which launched V3 in May 2021, bringing great success. By introducing market mechanisms to increase the utilization rate of funds, reduce handling fees, and increase LP income.The HOOKS of V4, which is developing, brings programmability to UNI. This nature will enhance the composability of the pool, more refined capital efficiency control, and have a lot of imagination.

1.1 Basic information

Data deadline: November 30, 2023, https://www.coingecko.com/en/coins/uniswap

1.2 Founding Team

Hayden Adams: Graduated from Shixi University in New York. In June 2012, he served as a researcher at the University of Columbia University Medical Center. He joined Siemens in 2016 to conduct engineering simulation and design exploration for many customers in the automotive and aerospace industry.The Uniswap Lab was established in October 2017.It was one of the developers of Ethereum.Personally invest in Lens Protocol and Wallet Connect.

Marvin AMMORI: CLO of Chief Compliance Officer, graduated from the University of Michigan’s business analysis, Harvard University School of Law.For 16 years of work experience, he has served as a legal adviser at Free PRESS, New Aemrican Foundation, Virgin Super high -speed rail project, Protocol Lab, and a professor of law at the University of Nebraska Lincoln.Have a deeper legal skills.Add to Uniswap Lab in November 2020.

Mary-Catherine Lader: COO of Chief Operating Officer, graduated from the Bachelor of History of Brown University, MBA, Harvard School of Business, and Harvard University.In 2018, he joined Goldman Sachs as an investment analyst, joined Blackstone in 2015 as the chief operating officer of the world. In June 2021, he joined UNISWAP to lead the growth, strategy and operation of Uniswap Labs.

Justin Wong: Chief Financial Officer HOF, graduated from Bachelor of Cornell University, Master of Business Administration of McCubs Business School, Texas.He joined the Heping Force in 2004, and then worked at the Deutsche Bank, Siemens, Virgin Super high -speed rail and other companies. He once founded The F Suite.A month, joined UNISWAP in March 2021.

Raphala S.:Uniswap Foundation COO, bachelor of economics, once served as a Bank of America analysts, FF Venture Capital, Blue {SEED} Collective Investment Assistant, and began to enter the blockchain industry in 2018.In October of the year, he joined Uniswap and served as chief growth officer to promote the growth and use of the Uniswap protocol.

1.3 Investment financing background

Paradigm has always been accompanied by Uniswap from 0 to 1, helping UNISWAP in terms of resources, ecological construction, funds, and development. The support and help of Paradigm today with Paradigm are inseparable.

2. Product conditions

2.1 code and developer

Code submission situation

Number of developers

According to the changes in the number of code submission and the number of developers, the overall progress of UNISWAP is stable, and the number of developers is maintained in a reasonable range. It can determine that the ROADMAP implementation and technical operation of Uniswap are very stable.

2.2 Product evolution

As a popular decentralized trading platform (DEX), from V1 to V3, Uniswap has undergone several major upgrades, each version has brought new features and improvements. In addition, Uniswap has released the V4 draft, which has introduced it.HOOKS and Singleton functions can greatly improve the combinedability of Uniswap, release more underlying value, improve more income opportunities, and optimize the use rate of funds.

The evolution from V1 to V3

Uniswap V1, released in November 2018

Simple model: Adopt automation as a market merchant (AMM) model, allowing users to trade directly with smart contracts instead of traditional buyers and seller markets;
Decentralization: completely decentralization, no centralized control entity;
Support is limited to ERC-20 token: V1 only supports exchange between ERC-20 tokens;

Uniswap V2, released in May 2020

ERC-20 transactions: The direct exchange of ERC-20s tokens is introduced, not just the exchange between ERC-20 and ETH;
Price prediction machine: Built -in price prophecy machine can help other applications get the cumulative price information of tokens to prevent price manipulation;
Lightning transactions: This feature allows users to borrow any quantity ERC-20 token from the beginning to the end of the transaction;

Uniswap V3, released in May 2021

Concentrated liquidity: Allowing liquidity The provider specifies a custom price range, increasing capital efficiency and reducing the risk of impermanence loss;
Multi -layer rate: Provide different rates (such as 0.05%, 0.30%, 1.00%), liquidity providers can choose different rates;
Location NFT: Each liquidity position is represented by a NFT, making the management and transfer of liquidity more flexible;

User flowing to v3

We can see from the figure above that the current UNI V1 is no longer used, and a large number of LP prefer V3.The UNISWAP V3 is essentially the improvement of the V2 version, providing LP with a more flexible liquidity interval and rate option, but this improvement has not changed from the bottom mechanism.The probability of LP will give priority to V3.

V3’s significant advantage

The transaction data of the inter -V2 and V3 periods are intercepted. In November 2023, the transaction volume used to use V2 was US $ 3.637 billion, and the handling fee was 0.3%, then the US $ 10.91 million shown on DEFILLAMA.Therefore, the user is not a slippery point, each handling fee is 0.3%; the V3 transaction volume is US $ 36.041 billion, which is nearly ten times that of V2, and the handling fee income is $ 44.12 million, that is, the conversion is 0.12%, which is the average on the averageThe transaction cost dropped by 60%.

V3 introduces market mechanisms to increase the utilization rate of funds, reduce handling fees, and increase LP income.The Hooks of V4 brings programming to UNI. This properties will enhance the composability of the pool and have a lot of imagination. It is also the current trend of separation of the front and rear end. Therefore, the programmability of the LP pool is programmableIt is particularly important to make each transaction bypassed the front end but cannot bypass the LP pool.

In other words, the future competition of the front -end will intensify. There will be various competitions in the front end of the LP pool that adapt to different programming functions.The most primitive feature -combined characteristics, and Singleton is the product that appears to reduce the GAS consumption brought by this Path.

What is HOOKS?
Originally, we executed a transaction, directly called the transaction function, and then looked for the optimal path and trading.Now that we have traded, we need to call the hook before the transaction. This Hook is a smart contract that can perform a given operation in a block, then execute the transaction, and finally execute the hook, that is, we want to execute the executionA transaction requires the function function of the LP pool front of the corresponding path.Developers can innovate on the liquidity and security of the Uniswap protocol, and create customized AMM pools through Hook integrated with V4 smart contracts.
What is Singleton?
In V3, we need to search for different pools (that is, different contracts) to perform multi -link (ETH → USDC → USDT, involving two contracts) token swaps.If all tokens are saved in a contract, the multi -link interchange of tokens only needs to be performed in one contract, then it will greatly reduce the GAS consumption of creating LP.This is called Singleton.

2.3 Market development

Development process

Social media

Operating data

The current market share occupied by UNISWAP is about 65%(using DUNE as a statistical caliber, because different websites may have deviations in the coverage of the contract)The further improvement of capital efficiency, UNISWAP will still occupy a favorable position in the next round of DEX competitions, and the specific track situation will be listed in the market and competition.

TVL data

In terms of TVL, a large number of TVL on V3 is still concentrated on Ethereum, but its share is gradually declining, and the event on the chain has gradually moved to Layer2.Layer2’s activity will also be further increased.

3. Economic model

3.1 token distribution

At the end of 2024.8, 1 billion UNI will be completely released. At this time, it will be completely circulated. The subsequent throwing pressure is mainly from the Community part.

The UNI token is mainly assigned to Community. This part is mainly used for ecological development, community developer contributions, and Grants.

3.2 Analysis of currency holding address

NANSEN statistics: The VC with the most currency address is A16Z, accounting for about 5.35%, about 53.5 million token.Far more than 2.5 million tokens from the second place VC Blockchain Capital

A16Z has always maintained a support for Uniswap. It has not sold a tokens in the past month, representing its optimistic about the UNI market outlook, and the recognition of UNI’s influence.The exchanges that currently have the most UNI token are Uniswap, and the centralized exchange is Binance.

3.3 tokens

The tokens of Uniswap are usually called UNI. There are several main uses:

Govern

UNI token holders can participate in the governance of the Uniswap platform.This includes the improvement of the agreement, the adjustment of the cost, and the voting of other key decisions.This decentralized governance structure enables UNI token holders to directly affect the future development direction of Uniswap.

Liquidity inspiration

UNISWAP sometimes inspires users to provide liquidity by rewarding UNI tokens.The user provides liquidity by depositing tokens into the liquidity pool of Uniswap to support the platform’s tokens exchange function.In return, they may receive UNI tokens as rewards.

Voting rights and representative rights

UNI token holders can not only vote to participate in governance decisions, but also represent the interests of small token holders.This enhances the voices of various scale users in the Uniswap community.

Protocol fee

Although UNISWAP has not yet charged the transaction, the UNI token may be used to motivate users participating in governance in the future, such as a part of the transaction costs to these users.

Community fund

UNI tokens can also be used to support community projects and proposals. These projects and proposals aim to improve agreements and expand their scope of use.

4. Market and competition

4.1 Market Overview

The competition of Uniswap is fierce, not only facing the competition between DEX, but also the competition between CEX.Because the biggest basic disk lies in CEX, Uniswap wants to eat CEX, it is very difficult. The main difficulty is that DEX cannot provide CEX’s same performance, liquidity, UI/UX, and product depth.

Only DEX track, UNISWAP has been in the 37%market share during the initial bull market, and today’s share is close to 65%, which is mainly the upgrade of V3 and its value and market recognition.

In terms of (weekly) transaction volume ratio, Uniswap is also in a well -deserved leading position, and once the Dex track accumulates and the user habits are developed, the Matthew effect will occur.

4.2 Circuit project

At present, the Pancake Swap market shall be 15.4%compared to Uniswap, and the market share of the CURVE is 5.1%. Because Pancake is the code of FORK Uniswap, it is also weak in original competitiveness.A game market has been built.

At present, PancakesWap TVL supports 9 chains at 1.43 billion US dollars.Its basic market comes from BSC, and there is almost no dominance in other chains.

Although Uniswap also deployed an agreement on the BSC, the use of PancakesWap on BSC may be rooted in the consensus of BSC users, and it is difficult for Uni to challenge Pancake.

4.3 advantages and risks

Uniswap’s competitive advantage

With capital advantages, Uniswap is supported by Paradigm in all directions. The team’s execution is high, the development progress has been stable, and the version of the version is better.
Technical advantages, the V4 version will further improve capital efficiency, combined, programmable, and let LP sink into the infrastructure of the DEFI world;
The first advantage, the first advantage to obtain the high market share, especially the market share of V3 increased from 37%to 65%, the threat and challenge of Pancake;

The risk faced by Uniswap

Legal risk, mainly because DEX does not require a license mechanism and tokens to increase the issuance of securities risks that may face in the future;
Code risk, even if the code is audited, there is still potential risk that will cause all the money to lose;
The risk of progress may be less than expected, resulting in token prices less than expected;
Iteraton risk, V4 version may bring more hidden dangers on chain, which will turn higher on the front -end requirements, and the front end needs to screen the LP pool for users;

5. Summary

UNISWAP has been the leader of the industry DEX since its launch, occupying the largest market share.Through the iterative upgrade of the AMM mechanism, price prophecy, and centralized liquidity, Uniswap has made DEX began to be accepted by more and more people.With the upgrade of Dencun and the recent UNISWAP V4 version, Uniswap’s market position in the Dex field will be further improved.

Although UNI tokens have not performed brightly for a long time, its potential has not decreased, but has been increasing with the development of UNISWAP. In particular, under the premise of almost no competitive products, UNI has a large existenceIn the rise of the market, once the market is going up and entering the bull market as a whole, it is likely to usher in a great extent.