Uniswap Version 2 Goes Live On Ethereum Mainnet Promising Enhanced Features
- Uniswap v2 goes live on Ethereum mainnet
- Flash loans are among the new features of Uniswap v2
Uniswap v2 Goes Live on Ethereum Mainnet
In an announcement on May 19, 2020, decentralized finance platform, Uniswap, announced that its new set of updates are live on Ethereum mainnet. This follows the successful testing of the platform on Ropsten, Rinkeby, Kovan and Görli testnets.
According to Uniswap’s project lead – Hayden Adams – the second iteration aims to solve the piercing challenges faced on the premier version including running all token swaps through ETH.
The Uniswap v2 will also add a new oracle system to complement its already running price oracle in a bid to onboard new users to DeFi projects.
The Uniswap v2 Upgrades
Following the announcement of Uniswap's latest version back in March, the Uniswap v2 platform is finally live on the Ethereum network.
While the platform greatly differs from its predecessor, three features are highlighted in the post including:
- Flash loans
- Manipulation-resilient price oracles
- The ability for anyone to create any token pair they want, if it’s on Ethereum.
Uniswap v1 supported an Ethereum-only swapping feature which always required two trades to complete ERC 20 token pair exchanges.
The second iteration is expected to have a direct pair of ERC 20 tokens; lowering the cost of the transaction while allowing liquidity providers to reduce their volatility on one side of the pool if paired with stablecoins.
The new v2 platform will include flash loans: a topic that has been met with a collective raising of eyebrows for many across the crypto industry.
To summarize: Flash loans permit a user to borrow any amount up to the total liquidity available, so long as the whole sum gets returned in the same transaction. The Uniswap v2 flash loans are expected to lower the overall number of transactions a user makes, saving them on fees.
Another distinctive feature is the introduction of manipulation-resistant price oracles that will provide backup for the Uniswap price discovery system. Uniswap will not use these price oracles as a main point of reference, however. But as a way of improving its own systems. Adams said:
“There is this huge demand for oracles, and it's a very valuable thing to have an on-chain price feed, especially a decentralized one.”
Uniswap currently holds over $43 million in locked value on the platform representing a 2.3% drop in the past 24 hours.