Uniswap, an Ethereum-powered decentralized exchange (DEX) marketplace, announced today it expects to roll-out V2 of its protocol in Q2 of this year. Uniswap V1 has successfully provided for pooled, automated liquidity provision on Ethereum; and functions without much upkeep, to provide a stable platform for ERC20 token conversion.
The Uniswap team says:
“Uniswap V1 was the proof-of-concept for a new type of decentralized marketplace. Uniswap V1 will continue to work for as long as Ethereum exists, and so far, it has worked very nicely for a wide variety of use cases. However, pooled automated liquidity remains nascent technology, and we have only just begun to realize its potential. For this reason, last year we raised a seed round and formed a dedicated team to research and develop Uniswap alongside the broader Ethereum community.”
V2 of Uniswap is the successor to V1 and includes many new features and improvements. See below a brief overview of some of the changes coming (more detailed info here):
- ERC20 / ERC20 pairs, in Uniswap V2, any ERC20 token can be pooled directly with any other ERC20 token.
- Uniswap V2 implements new functionality that enables highly decentralized and manipulation-resistant on-chain price feeds.
- Flash swaps on V2 of Uniswap will allow users to withdraw as much as they want of any ERC20 token at no upfront cost. Users can do what they want provided that by the end of the transaction execution, they either: pay for all ERC20 tokens withdrawn, pay for a percentage of ERC20 tokens and return the rest, or return all ERC20 tokens withdrawn.
- A number of technical improvements (i.e. smart contracts written in Solidity instead of Vyper).
Self-Sustainability
The code for Uniswap V2 includes a small protocol charge mechanism. At launch, the protocol charge will default to 0, and the liquidity provider fee will be 0.30%. If the protocol charge is switched on, it will become 0.05% and the liquidity provider fee will be 0.25%.
Those interested can check out the current testnet. The mainnet launch is expected in Q2 of this year.