Uniswap Employs V3 Contracts on Four Ethereum Testnets

Uniswap, the popular decentralized exchange, has moved forward in its plan of rolling out highly awaited “V3” iteration, revealing the employment of V3’s smart contracts to the entire test networks of Ethereum.

Through a media announcement on April 21, Uniswap Labs affirmed that the covenant’s V3 core and periphery smart contracts have been employed to all top Ethereum testnets namely Goerli, Rinkeby, Ropsten and Kovan.

The addreses of testnet were uploaded on GitHub and Uniswap has pointed to users that addresses are subject to change as the core team carries out last overhauls to the periphery repository. The third variant’s core agreements were also posted on GitHub.

A contest for identifying bugs was announced on March 23, with rewards to the tune of $500,000 for the identification of extremely critical bugs in V3’s smart contracts. As per the official announcement, Uniswap V3 is scheduled to be launched on mainnet on May 5.

Uniswap aims to achieve capital efficiency with its forthcoming protocol upgrade and the process may create issues with respect to passive income feature for offering liquidity by DeFi investors. Some of the amendments in the forthcoming iteration include numerous fee levels which permit liquidity providers to be remunerated for bearing several levels of risk.

Changes will also incorporated to the automated market maker matching process, which involves grouping individual trades into a single lot for platform users to transact.

Uniswap V3 offers three distinct fee tiers per pair as per anticipated pair volatility i.e. 0.05%, 0.30% and 1%. The fees have been structured to provide higher safety against transient loss to liquidity providers.

In spite of the high Ethereum network charges, which are presently at about $67.86 on average for performing a token swap on Uniswap as per Etherscan, the DEX continues to lure large trading volumes.

Yesterday, Hayden Adams, founder of Uniswap reported that the platform had recorded a landmark of $10 billion in weekly transaction volumes for the foremost time. While writing this article, UNI, the native token of DEX was trading at $32, reflecting a gain of 5% in the last 24 hours as per CoinGecko. Notably, the all-time peak price of the token was $39.20.