1/

A surreal moment, I can't believe it's finally ready.

🧠 Uniswap v3 was born out of @danrobinson's research into ways of improving AMM efficiency which began 18 months ago

Without him, v3 would not exist
2/

It also would not exist without @sendmoodz and @NoahZinsmeister - who have been working on implementing v3 since the launch of v2

3/

Developers like to call difficult tasks "non-trivial"

But to describe what they pulled off as "non-trivial" would be an absurd understatement

Implementing v3 efficiently in solidity is an incredibly difficult task.

Seriously, just look at the code:
github.com/Uniswap/uniswa…
4/

πŸ’œ Uniswap v3 would not exist without the the rest of the team at Uniswap Labs

πŸ’œ And it would not exist without our advisors, investors, contributors, and incredible community of users and developers

I'm so grateful to be surrounded by so many amazing and talented people
5/

I was originally planning on posting a thread on the tradeoff space between low slippage and price risk (imp loss), and how Uniswap v3 "solves" these problems by exposing the tradeoff space between them

But had to write this one first πŸ™‚

β€’ β€’ β€’

Missing some Tweet in this thread? You can try to force a refresh
γ€€

Keep Current with Hayden Adams πŸ¦„

Hayden Adams πŸ¦„ Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!

PDF

Twitter may remove this content at anytime! Save it as PDF for later use!

Try unrolling a thread yourself!

how to unroll video
  1. Follow @ThreadReaderApp to mention us!

  2. From a Twitter thread mention us with a keyword "unroll"
@threadreaderapp unroll

Practice here first or read more on our help page!

More from @haydenzadams

24 Mar
1/

Uniswap v3 provides the only possible "solution" to impermanent loss and price impact

It also lets you reduce total price risk while increasing your impermanent loss (relative to v2) with concentrated liquidity

This might need a blogpost but I'll try a long thread first
2/

"Impermanent loss" (IL) refers to the fact that if you sell a token before it rises in value it would have been better to hold it and sell more at the higher price

Similarly, if you buy a token and it drops in value it would also have been better to hold
3/

The "impermanent" part refers to the fact that if you sell a token and it rises in value you, but buy it back as it falls in value you are back to where you started

IL is only "impermanent" if prices eventually revert to where they started. Then all fees are pure profit
Read 19 tweets
27 Dec 20
UP003 - a proposal to establish a UNI grants program is the first @UniswapProtocol governance proposal to meet quorum and pass!

And it wasn't even close, exceeding the approval threshold by more than 20M votes:

βœ… YES - 60,088,813 (99.99%)
❌ NO - 9,300 (0.01%)
Thrilled that this is the first proposal to pass.

A resounding message from the Uniswap community in favor of funding developers and contributors.

Which reminds me - everyone complaining about slow governance is either concern trolling or missing the point.
On-chain governance is not a panacea. It opens up new risks and trust assumptions that do not exist in immutable, automated systems.

This is why Uniswap is highly automated and governance-minimized.

It's no coincidence the biggest project on Ethereum follows this ethos.
Read 4 tweets
2 Dec 20
1/

Mind-blowing results from @_charlienoyes @danrobinson @dave_white_ and @MartinTassy

TLDR: super bullish for AMMs/Uniswap

Will share some of the interesting results and some thoughts below
2/

Result 1:
"If the volatility of an asset is high enough relative to its average rate of return, LPs on Uniswap will do better than HODLers over time, even when the only incoming trades are arbs."

TLDR: LPing can be good without "retail" volume and arb is not bad for LPs
3/

Result 2:
In a zero latency, zero network fee, arbitrage-only (no "retail") world, the profit-optimizing LP fee approaches (but never touches) 0.

This was one of the more shocking results

TLDR: Lower fees = more profitable arb trades = more total fee revenue Image
Read 7 tweets
30 Nov 20
1/

I disagree with a few things here.

First, the number of unique price sources is quite meaningless on its own.

For example, if 95% of a tokens volume and liquidity is one one exchange, averaging in 4 others could lower the quality of the price feed.
2/

Second, you can’t directly compare manipulation resistance of entirely on-chain oracles that pulls from dex with something like chainlink that reports off-chain data

The attack surfaces and trust assumptions are very different
3/

Uniswap TWAPs report 100% accurate average of Uniswap price (at start of block) across arbitrary time periods with perfect reliability and accuracy.

The cost of manipulating is whatever is lost to arbitrage by moving the average market price across this period
Read 7 tweets
1 Sep 20
1/

Can't tell who is pretending and who legitimately doesn't understand that the $1B TVL deposited in an incredibly high risk investment on a single days notice is mostly massive whales

Anyone talking about community vs VC here is either delusional or intentionally misleading.
2/

This is not YFI. Andre built something new and real, that has value.

Sushi is one days effort by any competent dev at most.

It's just whales playing whale games trying to cash in on a hype cycle and the value created by Uniswap.

3/

Not surprised to see @iamDCinvestor talking about this, he's one of seemingly few people on crypto twitter who seems to understand the games whales play when the stakes are raised (and tries to explain them).

Read 4 tweets
17 May 19
1/

@Iiterature Sure!

@UniswapExchange has different functions for ETH-ERC20 and ERC20-ERC20 trades.

This gives the UX improvement of using ETH directly and not having to wrap it first.
2/

Some projects use WETH to pull ETH from your address via approve/transferFrom - something not yet supported with ETH.

(recent vitalik thread on the topic: ethereum-magicians.org/t/brainstormin…)

But most do it b/c they don't want to write separate functions to handle ETH.
3/

Uniswap creates exchanges between ETH and ERC20s. Since WETH is an ERC20, this allows for an ETH<>WETH pair.

Profit in Uniswap come from fees on trading volume.

Loss come from the difference in relative value of the assets from when liquidity is added to when it is removed.
Read 9 tweets

Did Thread Reader help you today?

Support us! We are indie developers!


This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3/month or $30/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!

Follow Us on Twitter!