UniSwap is an automated liquidity protocol based on a constant product formula and implemented on the Ethereum blockchain as non-upgradable smart contracts. Decentralization, censorship resistance, and security are prioritized over the need for trusted intermediaries. Contrary to Coinbase wallet, Unswap does not custody your crypto assets – they remain yours.
The new Uniswap version 3 (Uniswap v3) brings some notable changes. As a result of upgrading to version 3, Uniswap has changed how they handle liquidity pool ownership. As described by the Uniswap team, “v3 offers Concentrated Liquidity, which aggregates individual positions into a single pool”. Additionally, multiple fee tiers allow LPs to be appropriately compensated based on their level of risk. Furthermore, v3 swaps on Ethereum mainnet are less expensive than Uniswap v2. Uniswap v3 has prompted changes in Team.Finance as well. Here’s what’s changed.
Uniswap v3 to Replace Liquidity Pool Tokens with NFTs Locks & Liquidity Locks
When you create a pool with Uniswap v2, you receive an ERC20 token called an LP token (Liquidly Pool Token) in return. Team.Finance used this token standard (ERC20) to lock the token in our smart contracts and prevent a rug pull. That’s how Uniswap v2 worked. As an alternative to ERC20 tokens, Uniswap v3 creates NFTs, which serve as proofs of ownership, similar to the LP tokens in Uniswap v2. Considering NFTs’ increasing prominence in the crypto space and their increasing use as digital proof of ownership, this represents a logical next step in the development of Uniswap.
Uniswap v2 and ERC20 tokens are still supported by Team.Finance, but we have added the ability to lock NFTs from Uniswap v3. Team.Finance offers this functionality for all chains. In addition to NFT liquidity locks, we now support regular NFT locks as well. Therefore, if you are concerned that you will sell your Bored Ape or Crypto Punk too soon, you can lock it for three months. It is consistent with our mandate to make Team.Finance the most useful and effective product suite for Crypto projects in the ecosystem that we made this move to adapt to Uniswap v3 changes.
Author
Chris Munch is a professional cryptocurrency and blockchain writer with a background in software businesses, and has been involved in marketing within the cryptocurrency space. With a passion for innovation, Chris brings a unique and insightful perspective to the world of crypto and blockchain. Chris has a deep understanding of the economic, psychological, marketing and financial forces that drive the crypto market, and has made a number of accurate calls of major shifts in market trends. He is constantly researching and studying the latest trends and technologies, ensuring that he is always up-to-date on the latest developments in the industry. Chris’ writing is characterized by his ability to explain complex concepts in a clear and concise manner, making it accessible to a wide audience of readers.
