Uniswap Raises $11 Million In Series A To Build Uniswap V3
- All the funds will be directed towards expanding the development team and the creation of a new design.
- The v2 of the platform improves user experience and extends some of the core features, reducing costs and presenting traders with more flexibility.
Illustration from PxHere
On August 6, Uniswap, an Ethereum-based exchange designed to help solve decentralized exchanges’ liquidity problems by allowing users to swap ERC20 tokens, announced that $11 million have been raised in a Series A funding round. Led by Andreessen Horowitz, the round saw investments from USV, Paradigm, Version One, Variant, Parafi Capital, SV Angel, and A.Capital.
In the announcement, Uniswap reported that their project is now one of the most widely-used platforms on Ethereum, reporting approximately $1.5 billion in volume in July 2020 alone. With the funds gathered from the Series A, they will look to expand the already-established initial protocol-market fit and develop more innovative technology.
It was also stated that the investment round’s main purpose was to gather enough resources to grow Uniswap’s team for the creation of the third version of the platform, which is said to increase the flexibility and capital efficiency of the protocol.
With the launch of Uniswap V2, direct ERC20-to-ERC20 token swaps became possible, reducing costs in stablecoin-to-stablecoin trades. Moreover, the platform began gathering historical data by measuring prices in moments when they are expensive to manipulate, allowing smart contracts to constitute price averages in-between any moment in time.
The company also introduced Flash Swaps, resembling dYdX’s flash loans and allowing the lending of a limitless amount of assets from a liquidity pool. While the v2 platform surely added some superb new features, there is a lot of room for improvement in terms of transaction costs and trading fees. With Uniswap v3, most of these issues are expected to be cleared out.
The developer team expressed their enthusiasm about the new capital and the future of the company and said that they cannot wait to present their new design to the Ethereum community in the upcoming months. They also announced that job postings for engineers and a community manager are already up and more will be posted soon.
- Popular Telegram bot Unibot, which is used to snipe trades on Uniswap, became a victim of a token approval exploit earlier today, when it was switching to a new router.
- After confirming the exploit, Unibot assured users that their keys and wallets were safe, and that the project will compensate all affected users.
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- The so called “World App” crypto wallet will make use of the project’s “World ID” system to effectively distinguishes between humans and AI.
- While everyone will be able to use the new wallet, only verified “World ID” holders will enjoy gas-free transactions within the Worldcoin ecosystem.
- After passing its governance vote, the proposal to deploy Uniswap v3 on Boba Network has been scheduled to proceed in the coming weeks.
- Boba Network claimed the decision will allow Uniswap to expand into the Asian market, and enable developers to build on and off-chain DeFi applications on top of Uniswap.