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rostyk.eth
@rostyslavbortman.eth
Uniswap becomes modular. @Uniswap's move to modularity with their recent V4 upgrade opens doors for unprecedented experimentation, adaptability, and improvement across decentralized finance. In practice, this means developers can now easily create and customize liquidity pools with special features tailored to specific needs. These new modular pools will allow teams to adjust trading fees, pricing methods, manage liquidity, and introduce custom curves, making Uniswap more flexible and easier to upgrade. However, this new approach also brings some challenges. It could become harder for regular users to understand due to the increased complexity. There's also a heightened risk of security issues, as customizations might introduce unexpected vulnerabilities, requiring thorough audits and stronger security practices. Additionally, the creation of numerous specialized pools might fragment liquidity, potentially reducing trading efficiency and increasing costs. 1/4
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@rostyslavbortman.eth
Doesn't this remind you of something? Exactly—the Ethereum roadmap. Ethereum sacrificed short-term fee revenues to become a global settlement layer, which requires significant resources and collaborative efforts to build. Modularity introduces interoperability, fragmentation, and security challenges. The analogy that comes to mind is that Uniswap, with this new approach, could potentially become a global settlement layer for AMMs and DeFi in general. While they sacrifice short-term fee generation, the long-term benefit could mean fees ultimately flow to protocols built on top of Uniswap, benefiting their users directly or indirectly. 2/4
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