[HN Gopher] Uniswap v3
       ___________________________________________________________________
        
       Uniswap v3
        
       Author : dylkil
       Score  : 142 points
       Date   : 2021-03-23 17:58 UTC (5 hours ago)
        
 (HTM) web link (uniswap.org)
 (TXT) w3m dump (uniswap.org)
        
       | lupire wrote:
       | Lots of undefined acronyms in there.
        
       | gruez wrote:
       | >Capital efficiency paves the way for low-slippage trade
       | execution that can surpass both centralized exchanges and
       | stablecoin-focused AMMs
       | 
       | I'm skeptical of this. There was a story a few days ago[1]
       | pointing out that AMM like these are vulnerable to getting front-
       | runned, since there's a gap between when you broadcast your
       | transaction and when it gets confirmed by the network. Other
       | traders (especially with cooperation with miners) can exploit
       | this to front-run your trades. Is this fixed in V3?
       | 
       | [1] https://news.ycombinator.com/item?id=26514624
        
       | atarian wrote:
       | I skimmed through the article and don't even have the faintest
       | idea what this is about.
        
         | exdsq wrote:
         | I work in the blockchain space and still don't know most of
         | these DeFi terms, it's a whole world of its own.
        
       | seibelj wrote:
       | Uniswap is one of the most useful and interesting projects in
       | blockchain. Interested to hear why blockchain skeptics on HN
       | think this project is totally worthless (as they claim everything
       | in crypto is) given how much they have accomplished and how much
       | value is traded on Uniswap every day.
       | 
       | Huge proof and validation that blockchain / crypto is developing
       | into something extremely useful.
       | 
       | Here is a top-thread on HN from 7 months ago (before latest bull
       | run) about how Blockchain is totally worthless, and my responses.
       | Look at the hate! HN is absurd
       | https://news.ycombinator.com/item?id=24182334
        
         | exdsq wrote:
         | I'm going to play devils advocate here, but I don't think the
         | value traded on Uniswap really proves blockchain or crypto is
         | 'useful'. We need use cases outside of DeFi to have any chance
         | of getting HN to accept blockchain isn't a waste of time.
        
           | arberx wrote:
           | ENS and NFTs are what come to mind.
        
           | chrisco255 wrote:
           | Finance is a multi hundred trillion dollar industry. Whether
           | you like it or not, money makes the world go 'round. If all
           | blockchain ever did was disrupt traditional finance (as it is
           | currently doing), it would have firmly established itself as
           | a useful technology.
           | 
           | Software is eating the world. DeFi is eating traditional
           | finance.
        
         | wmf wrote:
         | There has been amazing technical progress in DEXex/AMMs but
         | ultimately they're used for 100% gambling.
        
           | arberx wrote:
           | While that might be the case currently, the capital efficency
           | of DeFi is miles ahead of any traditional system.
        
           | phyalow wrote:
           | Not totally true, one can use them to yield farm. (*which I
           | concede is gambling on credit risk, but only tangently)
        
           | chrisco255 wrote:
           | From a cynical perspective that's true of any market.
        
       | arthurcolle wrote:
       | Where is @JumpCrisscross to give us the ex-money wizard take on
       | these new financial innovations :)
        
       | tinkerrr wrote:
       | Some highlights that stood out:
       | 
       | - Range positioning for your capital. In the sweet spot, there is
       | higher fee returns but higher impermanent loss (IL).
       | 
       | - Range orders are possible. If the price goes out of range, it
       | is effectively a limit order (but you need to remove liquidity
       | before price comes back within range)
       | 
       | - LP tokens will be NFTs instead of ERC20s. This will likely
       | affect the way liquidity mining is done currently, or they'll
       | move to Sushi/remain on Uni v2.
       | 
       | - Moving to optimism L2 in the future. This would lower gas for
       | all DApps on Ethereum.
       | 
       | - More fee options for LPs
       | 
       | - Hint of protocol fees for UNI holders
       | 
       | - Business source license perhaps to disincentivize copies like
       | Sushi
       | 
       | Overall, this seems like a fairly substantial change. It will
       | probably take time for the ecosystem around this to mature.
       | Excited for the long-term implications of this update.
        
         | capableweb wrote:
         | Overall, good summary. Small nitpick:
         | 
         | - "This would lower gas for all DApps on Ethereum" not really,
         | the same amount of gas will still be used by other
         | applications. However, the average gas _price_ will probably go
         | down, as current Uniswap usage raises the gas price as people
         | try to get their transactions executed faster.
        
         | xiphias2 wrote:
         | > It will probably take time for the ecosystem around this to
         | mature
         | 
         | If the liquidity improvements are really significant in
         | practice, I guess the whole transition will happen very fast
        
       | ccamrobertson wrote:
       | The use of the BSL 1.1 for Uniswap Core is one of the most
       | interesting parts of this announcement. It will certainly slow
       | wholesale cloning of their smart contracts.
        
         | rodiger wrote:
         | Wonder how that will be enforced given the decentralized nature
         | of these contracts.
        
           | yokem55 wrote:
           | Well, the folks putting out the unlicensed clone would have
           | to be anonymous to keep from being sued for copyright
           | infringement. But if you are anonymous in the defi space,
           | users are a lot less likely to trust your product.
        
             | chrisco255 wrote:
             | Not that much less. SushiSwap is run by mostly anons and it
             | is the #2 AMM.
        
             | gruez wrote:
             | >But if you are anonymous in the defi space, users are a
             | lot less likely to trust your product.
             | 
             | Isn't the whole point of difi that you don't have to trust
             | them?
        
           | dcolkitt wrote:
           | The smart contracts live entirely on the blockchain, and
           | therefore cannot be shut down absent shutting down or hard
           | forking the entire Ethereum network.
           | 
           | However 99% of Defi users interact with these smart contracts
           | through web-based front ends that are centrally hosted like
           | any other site.
           | 
           | In the case of a copyright violation, Uniswap LLC could get
           | an injunction against any web front end that interacts with
           | the forked DeX.
        
             | arberx wrote:
             | You can host on IPFS and there would be no way to stop the
             | service. Just the routing to it perhaps. But you can go a
             | step further and use a ENS domain and point it to your IPFS
             | site. Truly permisionless and decentralized.
        
             | gruez wrote:
             | >In the case of a copyright violation, Uniswap LLC could
             | get an injunction against any web front end that interacts
             | with the forked DeX.
             | 
             | How big of a problem is this? As we seen with piracy sites
             | these court ordered blocks aren't exactly effective.
        
         | capableweb wrote:
         | > wholesale cloning of their smart contracts
         | 
         | Maybe stop cloning by US entities, if Uniswap is a US company,
         | but it won't stop many other entities to clone it if the
         | contracts have their source available.
        
           | ccamrobertson wrote:
           | True, it's up to Uniswap to enforce if cloned and the local
           | venue's respect of software licenses. But an intentional
           | clone that's clearly copying the code and under threat of
           | litigation likely won't be appealing for a lot of exchanges
           | to list.
        
             | capableweb wrote:
             | > clearly copying the code and under threat of litigation
             | 
             | Half of the ecosystem wouldn't exist if people were scared
             | of litigation and/or not copying code/ideas from others.
        
               | ccamrobertson wrote:
               | Most of the ecosystem has been open source thus far.
        
               | seibelj wrote:
               | Almost everything in crypto is MIT licensed. This is an
               | interesting experiment in licensing.
        
         | verdverm wrote:
         | So is this effectively a company that relies on a
         | permissionless platform adopting a permissioned license?
         | 
         | I thought permissionless was the ethos in the blockchain
         | ecosystem
        
           | ccamrobertson wrote:
           | Right, it's a very strong stand to take in the space. I
           | suspect most Uniswap users won't care, the code is still
           | fully auditable under the BSL.
           | 
           | Given the entire Sushi saga, I'm wouldn't be surprised if
           | there was pressure from big UNI holders (read: VCs) for a
           | move like this, but I'm curious to see if there is any
           | community fallout.
        
             | verdverm wrote:
             | Agreed, do the core developers leave the project is the big
             | one I was thinking about. This has happened (for other
             | reasons) to other projects and it effectively makes them
             | dead or dying
        
       | tfang17 wrote:
       | Uniswap is the biggest current threat to Coinbase.
       | 
       | Uniswap was trading more than Coinbase Pro during certain periods
       | of 2020.
        
         | wmf wrote:
         | Money has to enter and exit the system somewhere.
        
           | argvargc wrote:
           | Likely in this order:
           | 
           | Entering:
           | 
           | 1) Power companies
           | 
           | Entering & exiting:
           | 
           | 2) Off-market large trades (sometimes brokered through retail
           | OTC trading desks)
           | 
           | 3) Retail outlets such as Coinbase
        
           | EduardoBautista wrote:
           | Exactly. As long as people have the need to pay in regular
           | currencies, decentralized exchanges aren't an alternative to
           | Coinbase, Kraken, etc.
        
           | markkat wrote:
           | For now.
        
           | blhack wrote:
           | Honestly this is something that somebody like fidelity/other
           | banks are going to solve and push coinbase out.
           | 
           | A friend is going through the following scenario (and reached
           | out to me for help): they have over half a million dollars
           | sitting in a coinbase account, but coinbase has lost the link
           | between their coinbase account and their bank account.
           | 
           | What this means is that they can't get their _substantial_
           | amount of money off of coinbase and into their bank.
           | 
           | In some banks, if you have that amount of money, you have a
           | 24/7 number you can call where somebody will greet you by
           | name and solve whatever problem you have immediately.
           | 
           | On coinbase: post on reddit, annoy them on twitter, and try
           | to navigate their knowledge base until you get an answer.
           | 
           | Completely terrifying IMO.
           | 
           | Here's my actual prediction: something that I think still
           | includes coinbase in the process:
           | 
           | Coinbase just becomes coinbase custody. My bank account now
           | has a "cryptocurrencies" tab, with deposit and withdraw
           | addresses. This all happened with debit cards, and it's going
           | to happen with cryptos now as well. I'm still bullish on
           | coinbase, but coinbase becomes visa. I never interact with
           | them directly.
        
             | arberx wrote:
             | Yeah with DEXs and more traditional banks starting to offer
             | crypto on/off ramps don't see coinbase being that essential
             | anymore.
        
               | chrisco255 wrote:
               | Most of these banks are going to be using 3rd party
               | custody services from organizations with expertise in
               | managing crypto assets. Coinbase happens to be one of the
               | most experienced and reputable in this space. It's likely
               | 3rd parties will white label Coinbase Custody rather than
               | build their own crypto department.
        
             | boring_twenties wrote:
             | Can't they just link a different, or the same bank account
             | to Coinbase through the UI instead of waiting for support
             | to respond?
             | 
             | Alternatively, open an account at a different exchange
             | (e.g. Kraken or Bittrex), then transfer the crypto and
             | sell/withdraw fiat from there?
             | 
             | Obviously not defending Coinbase's absurdly bad customer
             | service, just trying to offer a potentially quicker
             | solution.
        
               | blhack wrote:
               | They tried. When you add another account, it never
               | becomes an option to actually withdraw the money. So you
               | go to withdraw, and there are no options there. Click
               | "add bank account" again, and it will appear to add it,
               | but never become an option for withdrawals. Eventually,
               | the message of "you have exceeded the number of times you
               | can try to add a bank account. Please try again in 24
               | hours" appeared.
               | 
               | Seriously this has flabbergasted me and I don't know that
               | I can continue recommending coinbase to people after
               | seeing this. It is an unbelievable kafkaesque nightmare
               | where you have half a million f*cking dollars that you
               | are trying to withdraw from an institution that purports
               | to be a type of bank...and the robot just can't do it.
               | It's not that you're trying to do something weird, but
               | there is just some bug preventing you from withdrawing
               | _your own_ money, with no real way to actually even
               | report the bug.
               | 
               | It legitimately feels like a type of cyberpunk nightmare.
               | You can see the money, it's yours, but you can't have it,
               | and there isn't even a person you can talk to to help
               | you. Don't worry, funds are safe. They're yours. You just
               | can't have them. Oh and also btw: you owe taxes on them
               | lol. Good luck!
        
               | boring_twenties wrote:
               | Wow, that's just bizarre.
               | 
               | There's still my second option though, open a Kraken
               | account and transfer the crypto there.
               | 
               | Do your own research as always, but Kraken has been
               | around since 2011 and has a solid reputation -- I've
               | never heard of anyone losing their funds.
               | 
               | It's not as slick as Coinbase, and used to have a well-
               | deserved reputation for somewhat frequent outages (rare
               | nowadays). Additionally you'll have to pay for a wire
               | transfer to withdraw fiat ($5 to Kraken, plus whatever to
               | the receiving bank). Presumably, in this case none of
               | these would be a serious concern. In the plus column,
               | their customer support is quick to respond and actually
               | helpful, unfortunately a rarity in the crypto world.
        
               | chrisco255 wrote:
               | Why not just withdraw to an Ethereum wallet and either
               | leave it there (in stable coins or whatever) or again, as
               | OP suggested take the route: Coinbase -> ETH Wallet ->
               | Other exchange?
               | 
               | Max fees would be like $50 for such a transaction.
        
             | shanusmagnus wrote:
             | What is even more insane than the insanity you describe is
             | that it's not an oversight, Coinbase has actually made that
             | their quasi-official policy: support is provided when you
             | irritate them sufficiently through social channels in their
             | ambient awareness They have literally externalized the
             | support channel of your friend getting her half a million
             | dollars to fucking Reddit. [Insert gif of house on fire +
             | "This is fine" dog.]
        
         | m3kw9 wrote:
         | Is that risk found in their S-1?
        
           | tinkerrr wrote:
           | It is, which is how you know it is not a real risk.
        
       | chizhik-pyzhik wrote:
       | For those who aren't familiar, this post is referring to a
       | decentralised trading system running on the Ethereum blockchain.
       | 
       | The acronym "LP" refers to Liquidity Provider, which is anyone
       | who locks up liquidity for two different assets to facilitate a
       | trade.
        
       | dcolkitt wrote:
       | I predict this winds up as a giant gift to the arbitrage bots.
       | 
       | Right now, the only real way to front run is to take liquidity
       | ahead of a large order. Since swapping costs fees, this restricts
       | front running to trades larger than 0.3% of the liquidity in the
       | pair.
       | 
       | In V3, it will now be possible for liquidity providers to "jump
       | the queue", by adding liquidity in a narrow range. If an
       | arbitrage bot is monitoring the pending block, it'll be able to
       | predict exactly how much the price will move on the next block.
       | It can then add liquidity at exactly that range, collect the lion
       | shares of the LP rewards, then instantly remove the liquidity at
       | the end of the block. The only remaining hurdle is the gas cost
       | to add->remove liquidity (which on L2 will be virtually zero).
       | 
       | I really hope they beta test this, because it could potentially
       | be disastrous. Right now, front running really only costs money
       | from large traders. Liquidity providers actually benefit from
       | collecting fees on the extra swaps. But this has the potential to
       | destroy the incentives to LPs, and drain all the liquidity out of
       | the market.
        
         | xiphias2 wrote:
         | Can't these narrow ranges be misused by miners who can decide
         | which transactions they want to put in the next block? I think
         | it would make sense for them to start looking at the contracts
         | themselves, not just the gas fees, and take part of providing
         | liquidity. Even ordering the transactions matter a lot, as they
         | could find arbitrage opportunities.
        
           | arberx wrote:
           | Yes, but this is solved by PoS.
           | 
           | Also, there's https://libsubmarine.org/
        
             | gruez wrote:
             | >Yes, but this is solved by PoS.
             | 
             | How so? Now rather than colluding with miners and/or mining
             | pools they'll collude with stakers and/or staking pools.
        
         | Tenoke wrote:
         | Is it really draining the liquidity or switching it to flash
         | liquidity instead?
         | 
         | That would make the estimates worse though.
        
         | threwaway4392 wrote:
         | Can't crypto kill front running entirely?
         | 
         | Alice, wanting to transact, writes down two opposing orders,
         | say buy 1 share of A for $10 and sell 1 share of A $10, plus a
         | signed secret stating which order it actually is.
         | 
         | Other players subscribe to one of the two opposite orders.
         | 
         | Next thing (whatever that means in these blockchains, but after
         | other players have subscribed to one of the two opposite
         | orders), Alice reveals the secret using her private key. This
         | reveals which order it was (buy or sell). Alice then makes a
         | deal automatically with whoever subscribed to that order. The
         | other opposite order is cancelled.
        
           | dcolkitt wrote:
           | This has been proposed quite a few times, but the problem
           | comes down to that it requires letting a single participant
           | "lock down" the entire liquidity pair.
           | 
           | For the above scheme to work, Alice's reveal would have to
           | occur at a later block than her initial commit. Otherwise an
           | arbitrage bot could simply peek at the reveal before the
           | commit is mined. Also Alice's commit has to lock the chain
           | until its reveal. Otherwise when her reveal is propagated on
           | the P2P network, the arbitrage bot could jump the queue in
           | front of her commit and still exploit her.
           | 
           | You're now talking about the market freezing for 12-seconds
           | (the block time) on every single trade. That's completely
           | infeasible for any sort of liquid pair like ETH/USDT. Not to
           | mention a single malicious player could DDoS the entire
           | market. Or use it as a free option during periods of high
           | volatility: lock the market then "reveal" in whatever
           | direction the centralized exchanges moved in the lock-up
           | period.
           | 
           | Maybe you could only lock "big trades", but that in itself
           | reveals a lot of information. You don't necessarily know the
           | direction, but you can likely infer it with high certainty.
           | For example if Alice doesn't own much of a token, then it's
           | nearly certain she's buying not selling.
        
           | Kinrany wrote:
           | Bots can probably still front run arbitrage opportunities
           | where it's clear which transaction is the correct one, but
           | the same can probably be done by encrypting the whole
           | transaction and only specifying the wallets involved.
        
         | pshc wrote:
         | Would it help if Uniswap implemented a cooldown on
         | adding/removing liquidity?
        
         | waterside81 wrote:
         | What do you mean by "take liquidity ahead of a large order" and
         | "adding liquidity in a narrow range"?
        
           | chrisco255 wrote:
           | When a user creates a swap transaction on Uniswap, it goes
           | into the ETH transaction queue (prioritized by gas amount).
           | If a bot notices that a user has a large swap (say swapping
           | $1.5M USDC for 1K ETH), a bot could theoretically 'front-run'
           | the order (by paying a higher gas fee than the original swap)
           | and inject say, $10M of liquidity into the expected price-
           | band of movement caused by the trade. They could then pocket
           | a portion of the transaction fees (whatever their fraction of
           | the 0.3% trade fee that Uniswap charges is), and then
           | immediately pull the liquidity out of the LP to then wait for
           | another front-running opportunity.
           | 
           | This doesn't harm the person doing the swap, per se. It harms
           | the Liquidity Providers that hold their capital in the pool
           | for longer term.
        
         | flixic wrote:
         | Moving to Optimism L2 will remove miner advantage.
         | 
         | Edit: of course, Optimism "Chain Organizers" can front-run, but
         | if they will be run by Uniswap themselves, then they have no
         | incentive to ruin their own product.
        
           | [deleted]
        
           | dcolkitt wrote:
           | This is a misunderstanding. You don't need to be a miner to
           | front-run transactions. You simply need to run a full node,
           | with visibility into the P2P network.
           | 
           | It's true that miners always have "right of first refusal",
           | in that whoever mines the block can choose to prioritize his
           | own transactions over anyone else. But if miners don't
           | exercise that option, then any third party can front-run the
           | target by outbidding them. Getting rid of miners, does not in
           | anyway remove the issue of front-running. Currently, less
           | than 5% of front-running activity is performed by miners.
           | 
           | As long as transactions are propagated over a P2P network,
           | then front running is still possible. So Optimism only fixes
           | this problem, if Uniswap LLC is hosting the entire side chain
           | and participants are directly submitting their transactions
           | to Uniswap's servers instead of the block chain. However if
           | that's the case, then they almost certainly will be legally
           | obligated to perform KYC/AML on all clients, at which point
           | they are essentially a centralized exchange.
           | 
           | For reference, even Binance Smart Chain, which is heavily
           | criticized for being a centralized exchange in disguise, does
           | not take this approach. Centralize validators are used, but
           | the network itself is still P2P instead of centrally hosted.
        
             | flixic wrote:
             | There's a lot of semi-incorrect information here.
             | 
             | With Optimism, there can be multiple L2 chains, by
             | different "Chain Organizers". When you submit a
             | transaction, you get a receipt from Organizer, a
             | cryptographic promise that it will be included in future
             | rollup.
             | 
             | It means only Organizers can attempt to front-run, by
             | adding a transaction before giving out your receipt. And
             | users can always choose to use different Organizers, those
             | that don't front-run. Since Organizers gain a small amount
             | of fees, it doesn't make sense to be a bad, front-running
             | Organizer.
        
             | phyalow wrote:
             | I spent quite a lot of time developing
             | Uniswap/Sushiswap/other dex arbitrage (back/front/sandwich)
             | tools and bots over the last 6 months.
             | 
             | When you say you simply need to run a full node, thats
             | incorrect. It is a prerequisite yes, but much less than
             | half the battle. You also need now to ensure correct order
             | placement (on any opportunity there are upwards of 5-15
             | competing bots), a friendly relay network/mining pools,
             | efficiently node peering (e.g. 2-400 peers per node,
             | managed on a custom routing table), a network of nodes to
             | broadcast/listen for mem pool messages across the entire
             | network instantaneously without waiting for P2P propagation
             | (1-2 hops may introduce enough latency to lose out on the
             | arb) (& some nodes are malicious - who fail to propagate
             | arb'ble tx's), patched/custom GETH instances running on
             | nodes (I am not at liberty to reveal what optimizations
             | make one competitive). And then above all of that you need
             | to be able to absorb, identify profitable transactions and
             | then compute/simulate optimal transaction parameters in a
             | very constrained amount of time.
             | 
             | So its not at all simple, in fact I have wound down most of
             | my operations as the costs vs. rewards are extremely
             | marginal now vs. what they were mid last year.
        
       | EGreg wrote:
       | Is a token going to have to choose between listing on Uniswap 3
       | and Uniswap 2? Is there any advantage for LP to list on Uniswap 2
       | in terms of being "first" on a platform, as there is for building
       | on iOS or Facebook or soemthing?
        
         | Acrobatic_Road wrote:
         | >Is a token going to have to choose between listing on Uniswap
         | 3 and Uniswap 2?
         | 
         | No. There be separate liquidity pools.
         | 
         | >Is there any advantage for LP to list on Uniswap 2 in terms of
         | being "first" on a platform
         | 
         | There is no inherent advantage to being first. As soon as
         | volume picks up, the other liquidity providers pile on and get
         | their cut of it.
        
       | squaredpants wrote:
       | Still think pangolin on the avalanche network is a much better
       | dapp than uniswap can ever be in PoW ethereum.
        
         | companyhen wrote:
         | https://polkaswap.io my friend, launches end of March :)
        
         | EGreg wrote:
         | Links please
        
         | arberx wrote:
         | Pangolin is basically a uni fork, on a different network.
         | 
         | Uni v3 on L2 solves some of the gas issues seen on L1.
        
       | russdpale wrote:
       | yawn- tell me when the fees are cheap.
        
         | cdiddy2 wrote:
         | they are launching it on optimistic ethereum too. will be cheap
         | fees there
        
         | phyalow wrote:
         | RTFA, May.
        
       | teryyy wrote:
       | Can someone ELI5 how this compares w/ SushiSwap?
        
         | cdiddy2 wrote:
         | At the moment SushiSwap has virtually none of the features
         | listed in Uni V3. Sushi is coming out with its own new features
         | that will differ from this named BentoBox and others. Both Uni
         | and Sushi are innovating in their own ways which is great to
         | see
        
         | capableweb wrote:
         | There's a large difference, at least compared to Uniswap V3.
         | Read the features to see what the new version has that
         | SushiSwap doesn't.
         | 
         | For the record, SushiSwap is a fork of Uniswap, so the initial
         | features of SushiSwap was all that Uniswap had.
         | 
         | By now, they mainly differ in that SushiSwaps governance seems
         | to still go forward while Uniswap has been stuck since the
         | requirement for doing proposals is too high.
        
         | dylkil wrote:
         | All new features compared to SushiSwap.
         | 
         | Interesting to note the updated license for v3, in an attempt
         | to prevent another SushiSwap
         | 
         | 'Uniswap v3 Core will launch under the Business Source License
         | 1.1--effectively a time-delayed GPL-2.0-or-later license. The
         | license limits use of the v3 source code in a commercial or
         | production setting for up to two years, at which point it will
         | convert to a GPL license into perpetuity'
        
           | splix wrote:
           | Since the SushiSwap was anonymous fork of Uniswap, I'm
           | wondering how they plan to prevent an another anonymous fork
           | just by using a different license?
        
             | VectorLock wrote:
             | Through the only avenue that licenses matter - litigation.
        
             | chizhik-pyzhik wrote:
             | Honestly they probably can't prevent forks. It's more of a
             | discouragement, since as a forker you'd be subject to being
             | sued if they can figure out who you are.
        
               | chrisco255 wrote:
               | So basically this will prevent American citizens from
               | forking, but international folks will have free reign to
               | fork as they wish.
        
           | Acrobatic_Road wrote:
           | One of the big selling points of the original uniswap was
           | that everything was open source as opposed to bancor. I am
           | disappointed by this.
        
       | xiphias2 wrote:
       | What's really interesting to me is that all these advancements
       | could have been made by a centralized service for stock trading
       | as well if the debt based system and T+3 days margin calls
       | wouldn't be a requirement.
       | 
       | DTCC owns most US stocks, so I don't see why they wouldn't be
       | able to launch uniswap style contracts to allow better use of
       | liquidity instead of just having simple limit order contracts.
        
         | gruez wrote:
         | >What's really interesting to me is that all these advancements
         | could have been made by a centralized service for stock trading
         | as well
         | 
         | uhh, what? The two features that were introduced were
         | "Concentrated liquidity" and "Multiple fee tiers". I'm not sure
         | how either of them are applicable to centralized exchanges.
         | 
         | >and T+3 days margin calls wouldn't be a requirement.
         | 
         | https://news.ycombinator.com/item?id=26007414
        
           | xiphias2 wrote:
           | Concentrated liquidity is needed because of the huge cash
           | requirement right now (as the link that you provide writes
           | about it). Having guaranteed execution with real time
           | clearing, real cash and smarter contracts is a sounder system
           | than stupid contracts and margin trading with slow clearing.
        
             | gruez wrote:
             | >Concentrated liquidity is needed because of the huge cash
             | requirement right now (as the link that you provide writes
             | about it).
             | 
             | Not really? The link says having T+0 settlement would make
             | liquidity _worse_ because market makers can only trade with
             | whatever cash they have on hand.
        
               | xiphias2 wrote:
               | We agree.
        
       | marsrover wrote:
       | Very excited to see the move to L2. With the amount of
       | transactions Uniswap produces, this will cut down on Ethereum
       | fees by a good bit.
        
         | dcolkitt wrote:
         | L2 really has nothing to do with Uniswap V2 vs. V3. As long as
         | the L2 protocol is byte code compatible with the EVM, any
         | contract that runs on main net can be ported to L2.
        
           | marsrover wrote:
           | It kinda does since there was no plan to move to L2 during
           | Uniswap V2.
        
             | chrisco255 wrote:
             | Presumably Sushi or some other fork will take this route if
             | Uni doesn't.
        
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       (page generated 2021-03-23 23:02 UTC)