The much-anticipated version 3 Uniswap upgrade may have failed miserably on its first day.
Traders have complained about exorbitant fees and technical challenges with the system.
The release of Uniswap v3 has become one of the highly anticipated events on the cryptocurrency calendar this year. The update finally implemented on May 5. But it leaves out several much-needed speed and cost improvements.
Users have flocked to crypto social media to share their thoughts on the redesigned decentralized exchange. Furthermore, not all of them have been good.
Version 3 Problems
The token exchange quotation system of Yearn Finance coder banteg had questions. It also includes past model prices as well as a button to achieve a better price on version 2. Why not route it and send a notification if the front end receives a better quote from v2? There seems to be no rational reason for a user to favor a poor execution. A similar issue arose during the V2 deployment.
DeFi Prime remarked on the complexity of incorporating the latest interface to increase liquidity UI currently requires a postgraduate diploma to understand how to price your liquid assets on its Telegram stream. It’s a significant step back from the minimalism of v2.
Most of the bad feedback concerned the platform’s use expense, as Ethereum networking fees remained high, and no included fuel alternatives along with v3. Haseeb Qureshi, the Managing Partner at Dragonfly Capital, remarked on the prices by giving a sample transaction from three wrapped ETH (wETH) to DAI. It costs roughly $24 in-network fees. As anticipated, Uniswap v3 appears to be more expensive for gas than v2. It seems that single-hop transactions are approximately 28% more expensive. The gas prices must be higher for bigger deals that cross numerous ticks/buckets.
Further concern was the exorbitant cost of setting up a pool and increasing liquidity. One developer actually discovered it was 0.2 ETH, or almost $750. It contradicts Uniswap’s initial statements that version 3 would have cheaper gas.
UNI Price Review
Just at the time of publication, UNI prices have fallen somewhat the same day, with something like a 1.6 percent drop to $41.90, as per CoinGecko. The token was again cooling off with its all-time high of little under $45, set on May 3.
According to DappRadar, the platform still has $9.5 billion in collateral, indicating that the company’s high costs have just not resulted in any significant liquidity losses and problems.
DappRadar creates a distributed application (dapp) shop for its virtual VR reality, complete with a native token, and it was discussed that this new token would serve as the ecosystem’s bond, incentivizing consumers for their efforts providing token owners power over the World’s Dapp Store.