(-1) TIME TO MATIC, UNIV3!

Mirko Semprebon

Published in

MetalSwap

4 min readApr 7, 2022

Ladies and gentleman, time is nearly over!
Can’t wait for what’s next!

And it’s happening on Polygon’s UniSwap V3!

UniSwap V3 was unveiled on 5 May 2021, launching on Ethereum’s main network. It focuses mainly on these innovations:

Ability to add concentrated liquidity in specific price ranges within the price curve.
Create multiple layers of commissions.
Improve oracles
Offer its protocol in both layer 1 (Ethereum) and other layers of Ethereum focused on improving scalability.

Concentrated liquidity
Concentrated liquidity is liquidity allocated within a customised price range. Previously, liquidity was distributed between 0 and infinity, evenly across the price curve.

V3 allows liquidity providers (LPs) to concentrate their capital on arbitrary price ranges. Rising and falling asset prices can fall outside the limits set by LPs. When this happens, the liquidity of the position is no longer active and no longer earns commissions. This gives traders deeper liquidity and allows LPs to earn more with less invested capital.

Concentrated liquidity allows the market to decide on a reasonable distribution of liquidity, allowing LPs to create as many positions as they see fit in their price range.

How to provide liquidity

Select the token pair you wish to provide as liquidity. Factors to consider include total locked-in value, trading volume and risk assessment.
Select the right level of fees, as each token pair offers three levels of fees depending on stability and correlation. Note that the app will automatically select the commission level with the highest liquidity because it is a good heuristic.
Select a price range in which to provide liquidity. When making a pricing decision, you should consider the degree to which you think prices will move over the life of the position.
Decide how much capital to contribute to the position. You should enter a value in one of the “Deposit amount” boxes and the other box will automatically populate the corresponding amount. The relationship between these two fields is based on the position of your price range around the market price.
Approve and add. You’re finally ready to send the transaction, but you may first need to approve the UniSwap router contract to spend tokens on your account.

UniSwap’s commission calculator allows you to enter your investment amount, see your current swaps and liquidity, and estimate your commission income. For example, for a $100 input with a 0.05% commission, at the time of writing, you are likely to pay a $0.3 commission.

Here’s a quick comparison between a normal V2 position (as it is for PancakeSwap on BNB as well) and a V3 ranged position:

As pointed out before, with our liquidity coming in, we will be one of the very first pools to reach 1 M$ of counter value on Polygon!

The more liquidity you bring in, the more reward is coming from pool fees.

And what happens if we find a way to deploy a new mechanism that stakes the NFTs from the pool and uses a quota of the fees to buy back $XMT on the market???

-1

What a time to be in DeFi!

⚠️Warning⚠️

❗ METALSWAP ‘s admins or moderators will NEVER contact you directly on any social under any kind of circumstances.

❗ Everything concerning $XMT ‘s smart contracts and addresses is shared by our official channels (list below), do not trust any different info from any different source.

To the MetalSwap!

… and beyond

✎ What is MetalSwap?

MetalSwap is a decentralized platform that allows hedging swaps on financial markets with the aim of providing a coverage to those who work with commodities and an investment opportunity for those who contribute to increase the shared liquidity of the project. Allowing the protection for an increasing number of operators.

With MetalSwap we enable hedge swap transactions through the use of Smart Contracts, AMM style.