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New feature-rich Uniswap V2 to launch in 2020 Q2

New feature rich Uniswap V to launch in Q

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TL;DR

Uniswap V2 is coming in the second quarter of 2020. It will be feature-packed with flash swaps, ERC20 pairs, and fair price oracles. The eagerly awaited upgrade will also include a protocol charge system that provides revenues back to the contributors and the Uniswap ecosystem.

The second Uniswap protocol version will also promise many minor changes integrated as per community feedback. Uniswap has witnessed significant growth, especially in 2020, as it powered $380 million worth of trading volume this year alone. Uniswap V2 will be deployed in the second quarter of this year after undergoing extensive testing. For those developers who cannot wait to experiment with the new version, there’s a developer-specific initial smart contract operating on Kovan and Ropsten. Additionally, the team has no plans to shelve Uniswap V1.

Uniswap V2 promises much more than V1 and then some

Let’s begin with what’s new in Uniswap V2. The new protocol provides ERC20 and ERC20 pairs, which means users can pool together two different ERC 20 tokens. The current V1 allows only Ethereum-ERC20 swaps. Now, users can take assorted ERC20 token positions and don’t require the obligatory ETH exposure. They don’t need to swap ERC20 tokens by routing them individually via ETH. The two tokens need only a mutual path to make successful swaps. Multi-step swaps can be optimized using router contracts.

Improved price oracles are another highlight of Uniswap V2. The price feed model has undergone significant improvements to ensure true market-dependent price stability. The market price of pairs will be determined at the beginning of each block. Thus, attackers would have to compromise their arbitrage to undertake any nefarious activity unlike what they did during the DeFi attacks.

Flash swaps are the next big thing. Users can execute arbitrage codes using ERC20 tokens of any amount. However, users have to return or buy the tokens. The platform will charge a liquidity provider fee of 0.3 percent on flash swaps. However, zero upfront cost promises more savings due to zero upfront capital arbitrage. The protocol charge mechanism will help Uniswap V2 create a self-sustainable ecosystem.

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Gurpreet Thind

Gurpreet Thind is pursuing Masters in Electrical Engineering at University of Ottawa. His scholarly interests include IT, computer languages and cryptocurrencies. With a special interest in blockchain powered architectures, he seeks to explore the societal impact of digital currencies as finance of the future. He is passionate about learning new languages, cultures and social media.

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