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Why Uniswap is changing the world

18.10.2021

There is no question or shadow of a doubt that decentralized finance protocols are the absolute pinnacle of the next generation in fintech development.

The blockchain protocols which are now becoming extremely sophisticated and multi-faceted in their functionality and uses are now set to influence and power the entire digital financial system of tomorrow, and although the more enthusiastic users are getting into them right now, the mainstream is most certainly in view.

Protocols such as Uniswap, which until now have been either regarded as technologically advanced havens for computer geeks, or the preserve of cryptocurrency developers only, are now beginning to gain the recognition that they should, and are going for the big time.

One particular demonstration of this was Uniswap’s hiring last week of Hari Sevugan, who had previously been a high profile and very senior spokesperson for former US president Barack Obama.

This clearly shows that Uniswap, led by its founder Hayden Adams, is embarking on a ‘going big’ PR campaign as Uniswap, along with other highly advanced DeFi protocols, look toward getting their PR into the mainstream and take their part in developing the decentralized ecosystem of the future.

Hari Sevugan is a man of many credentials. He was instrumental in Barack Obama’s campaign for premiership in 2008, and was renowned at he time for giving out “the press office’s harshest lines.” He is now one of the Principals at Chicago-based advocacy firm 270 Strategies.

Importantly, as Uniswap has brought on board a very high profile spokesman who is notable for his work during the Obama campaign, it is now clear that advocacy in the public domain is a priority.

Not only that, but the need to work closely with lawmakers in an effort to increase awareness for the protocol and the DeFi ecosystem during a time at which US regulators are looking at a fully comprehensive regulatory framework for cryptocurrency and decentralized finance.

The move toward going bold and into the mainstream represents a milestone in the development of DeFi. This particular protocol facilitates automated transactions between cryptocurrency tokens on the Ethereum blockchain through the use of smart contracts and as of this time last year, it was estimated to be the largest decentralized exchange overall by daily trading volume.

Now that Uniswap V3 is on the cards, and level 2 technology is becoming the focus within the development of DeFi protocols, the infrastructure is highly sophisticated. By the summer of 2021, Uniswap v3 began to experience equal usage to L1, with its release onto digital exchanges expected to provide up to 10x transaction cost savings.

At that time, additional demand was expected to drive gas costs higher but that has been an area that many tech developments are working on reducing since then. Uniswap was generating fees of approximately US$2–3 million daily for the liquidity providers who facilitate liquid markets for the cryptocurrencies, which should be regulated exchanges going forward.

The Ethereum blockchain’s multi-use technological advantage are instrumental to the way forward for all digital finance, especially with regard to smart contracts and liquidity.

Uniswap V3 allows crypto asset liquidity providers to trade assets by adding liquidity to a price range entirely above or below market price, which allows them to impose a fee-earning limit executing along a smooth curve. Improved capital efficiency, meanwhile, also allows for improved low-slippage trade execution when compared to centralized exchanges and stablecoin-focused automated market makers.

Never has there been a more important time to work with a regulated exchange such as CoinMetro which should be the go-to fiat on and off ramp for access to this technological tour de force.

Additionally, given that Uniswap uses liquidity pools rather than serving as market maker, also in contrast to centralized exchanges, it is the game-changer that we should pay attention to, especially given the company’s clear wish to reach out to a large audience.