Uniswap V3 is Now the Past: The Next-Gen DEX Has Arrived

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Decentralized exchanges are now gaining momentum in the crypto space, offering crypto holders highly-efficient ways to capitalize on their crypto assets. In the past few years, DEXs have become more convenient and sometimes even safer to use than classic, centralized exchanges. Where did it all begin? Where is the tipping point in DEX development, and what will be next? 

If you are into DeFi, you have probably heard about Uniswap – the project that once carved out a niche in the market. Later on, the legendary Uniswap V3 introduced concentrated liquidity, resulting in higher capital efficiency along with higher returns for traders and liquidity providers. With concentrated liquidity, providers received the right to allocate their capital to a preferred price interval. This was a huge moment, as crypto holders could now use their funds to the maximum extent and start earning by providing even small amounts of liquidity.

So far, Uniswap keeps the leading position among DEXs all around the valley. Nevertheless, this platform has always carried with it a big disadvantage – the risk of high impermanent loss due to static fees. Stepping closer to the future, the DEX that spiritually carries the status of Uniswap V4 has now solved these issues. 

The multi-solution DEX, Algebra - which is built on Polygon - has preserved and streamlined the concept of concentrated liquidity; adding up the unmatchable for now functionality. Let’s break it down further and spell out the innovative topping that brings Algebra on top of the list. 

1. Dynamic Fees

Uniswap V3 features 3 pools so liquidity providers can’t predict the best one to add