UV3 and Its Merits
UV3, Uniswap V3’s first non-commercial trading protocol deployed on Layer 2, provides trading services with the best liquidity, lowest fees, and highest capital efficiency across the whole network, made possible by the high-speed, stable, and low-gas fee Binance Smart Chain (BSC) platform and its perfect compatibility with EVM.
The upcoming Uniswap V3 prioritizes a higher level of capital efficiency and transaction liquidity. For users, it reduces slippage costs and enables transactions with larger liquidity. For liquidity providers, it allows more focus on effective price ranges for increased capital efficiency. Its new features include concentrated liquidity, higher capital efficiency, active liquidity, range orders, liquidity NFT, flexible fees, and advanced prognostic machine, etc.
Developed based on Ethereum by Binance Exchange, Binance Smart China (BSC) is a public chain that is fully compatible with Ethereum Virtual Machine (EVM) and primarily serves the DeFi ecosystem. Out-innovating Ethereum in consensus algorithm, it adopts PoSA (Proof of Stake Authority) and combines the functions of Delegated Proof of Stake (DPoS) and Proof of Authority (PoA) mechanism, with 21 verification nodes as the basic hardware server. This results in a 3-second block time and a TPS 20 times higher than ETH, significantly boosting performances to meeting the DeFi ecosystem’s demand for the public chain. Rooted in the Binance Exchange’s ecosystem, BSC is endowed with huge assets, a massive user base, and strong transaction demands. DEX, as the liquidity hub in the ecosystem, sits at its core.
UV3Swap, a new generation of decentralized trading protocol that deploys Uniswap V3 on the BSC, is community-initiated, community-governed, and community-operated. It combines the strengths of Uniswap and BSC to maximize this project’s merits, providing users with the best liquidity across chains all over the whole network, LPs with the highest capital efficiency, and community users with optimal participation opportunities.
We will adopt a combination of community DAO governance and strong operations support to increase investor stickiness and participation, to pursue distributed operations and incentives that are targeted at the whole team and everyone in it for best outcomes, and to constantly innovate in developing various more user-friendly functions.
UV3Swap as a Boost to BSC Superplatform for Asset Trading
Within just 6 months into its launch, BSC has locked in over $120 billion worth of assets to become a major blockchain platform for asset trading and the busiest public chain. It has outstripped ETH in the volume and number of transactions and enjoyed a boom in application protocols and ecosystem.
Amid this prosperity, problems also emerged, e.g., low capital efficiency at the current DEXs, poor community governance during project development, and divergent interests between project owners and traders. The deployment of more Layer protocols on ETH is set to erode BSC’s relative lead in lower fees and higher speed.
Therefore, as the official operator strives to maintain BSC’s advantages, its loyal fans also have an important role to play in advancing BSC’s long-term development and prosperity by giving full play to the community’s potential and advantages as well as by improving the advantages of BSC’ DEXs. As the hub of value exchange in the public chain ecosystem, DEXs are vital to the trading and appreciation of assets across the whole ecosystem.
Innovative Multi-scenario Application of UV3Swap LP NFT
According to the updated Uniswap V3, after adding assets to the asset circulation pool of UV3Swap, a liquidity market maker has to issue NFT for each deposited LP because its parameters may vary. This community-driven DEX project will take advantage of the community to extensively solicit opinions on innovating LP NFT’s multi-scenario applications. Early efforts in this regard have produced the following options. You are welcome to contribute your suggestions and comments.
- Assets Transfer and Assets Separation
Seasoned designers with the required qualifications can set a parameter model with higher returns and transfer it to other investors, thus achieving separation of assets and solutions for best resource allocation.
Cooperate with relevant lending agreement parties to offer LP NFT collateralized lending service, providing more diversified investment allocation for asset owners. The potential yield, asset attributes, and parameters of LP assets can significantly increase the collateral rate, giving them a higher level of collateral value.
- Preset Trading Strategy
LP NFT can set the price range for trading. Above this range, all the appreciated assets will be exchanged for each other’s assets. This way, it can realize the pricing, buying, and selling strategy for specific assets. For example, the set price range of 2000-3000 for ETH-USDT; if ETH exceeds 3000, all the assets will be exchanged into USDT, if ETH is lower than 2000, all the assets will be exchanged into ETH. This achieves high selling and low buying of ETH assets, anti-marketing operation.
- Collection Value
The above functions add to unique LP NFT the asset value, strategy value, and reputation value. It cannot be tampered with on-chain, is unique and rare, and has appreciation potential, and thus has unique collection value.