Uniswap aims to reduce costs on its platform by 99% on its V4.
UNI was currently on a positive run as it added less than 1% to its value.
Uniswap version 4, currently in development, has exciting potential with the addition of EIP-1153. The team dropped hints about some of the features it could bring. One aspect worth exploring was how this integration might impact costs.
In addition, it is essential to understand the current state of costs on the Uniswap network. So, what are the plans to include EIP-1153 and what is the prevailing fee landscape?
– How much are 1,10,100 UNIs worth today
Uniswap will combine EIP-1153 with singleton architecture
Uniswap has recently provided insights to integrate the new EIP-1153 into the upcoming V4 of their platform. In their post, they explained how this Ethereum proposal would synergize with the singleton architecture adopted by V4. The singleton contract acts as a centralized entity that oversees all token pairs within the protocol.
This innovative approach delivers substantial gas efficiency benefits and reduces the costs associated with deploying new trading pairs by as much as 99%. In addition, the singleton contract includes a flash accounting system, which contributes to cost reduction by conducting internal transactions before finalizing balances. This intelligent mechanism helps to optimize gas costs.
Ethereum Improvement Proposal 1153 (EIP-1153) marks a remarkable advancement in improving the efficiency of transaction execution on the Ethereum blockchain. By introducing temporary storage opcodes, this proposal aims to streamline operations and reduce costs associated with storage during smart contract execution.
Overall, Uniswap’s goal with these remarkable features is to lower fees on their platform. Using the benefits of EIP-1153 and the singleton architecture would make this possible.
Current cost trend on Uniswap
Based on data from DefiLlama, Uniswap V3 generated a significant volume of transaction fees. As of the current moment, the platform collected fees in excess of $323 million on an annual basis. In addition, the daily allowance is currently about $507,000.
However, when looking at the total annualized cost for the platform, the figure surpassed $400 million as of the latest available data. In addition, the Total Value Locked (TVL) on Uniswap V3 exceeded $4 billion. This indicated a stable and significant amount of value being entrusted to the platform by users.
UNI on an upward trend
Uniswap’s daily timetable [UNI] showed that it had made modest upward moves. At the time of writing, UNI was trading around $5.2, with a marginal gain of less than 1%. The Relative Strength Index (RSI) indicated a bullish trend, albeit weak, while the Moving Average Convergence Divergence (MACD) suggested a similar sentiment.
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As for Uniswap’s upcoming V4, it remains to be seen how effective it will be in terms of rate reduction. However, a possible reduction in rates could attract more users and generate more traffic to the network.
This post Uniswap proposes rate reduction; will UNI embark on a bullish journey?
was published first on https://ambcrypto.com/uniswap-proposes-fee-reduction-will-uni-embark-on-a-bullish-journey/