On May 5, Uniswap’s v3 iteration went live. The buildup preceding the launch was remarkable and even earned Uniswap v3 the title of “DeFi’s most-anticipated DEX upgrade.”
The catch was that Uniswap would introduce concentrated liquidity, multiple fee tiers, and increase capital efficiency by up to 4,000 times relative to v2. But four days after its launch is v3 doing all that it promised? The short answer is no!
Several users have complained about the new version and one of the recurring complaints is higher gas fees.
Twenty-four hours after the upgrade was launched, the project’s founder Hayden Adams tweeted that the launch day of the third iteration was more successful than the previous version in terms of volume. According to him, v3 saw twice as much volume on its first day than v2 did in its first month. He went further to assert that v3 was operating with greater efficiency than v2.
🎂 It's been ~24hrs since the launch of @Uniswap v3
v3 24hr vol: $150m
v3 tvl: $300m
vol/tvl (efficiency) = 50%
v2 24hr vol: $1.1b
v2 tvl: $8.1b
vol/tvl = 13%
🤯 In it's first day, v3 has already seen more than twice the volume that v2 saw in its first month
— Hayden Adams 🦄 (@haydenzadams) May 6, 2021
Uniswap v3 may have performed well in terms of volume, but users are not satisfied with the product. One user told Adams:
Even more expensive to make mistakes now. Tried to migrate my UNI/ETH liquidity to V3, failed and paid 108.09 USD worth of gas.
Haseeb Qureshi, Dragonfly Capital Managing Partner also said the same thing. He asserted that v3 was more expensive to use than the previous version. According to him:
Looks like Uniswap v3 is more gas expensive than v2, roughly as expected. Specifically, it’s about 28% more expensive for single-hop transactions it looks like. For larger transactions that cross multiple ticks/buckets, the gas costs should be slightly larger.
Beyond high gas fees, users are also complaining about the cost of creating pools and adding liquidity on the new upgrade.
#UniswapV3 Adding liquidity to uniswapV3 consumes 0.2ETH (40Gwei). I silently read a word in my heart: grass (a kind of plant)[email protected] @haydenzadams pic.twitter.com/LjUFNMHb9X
— Simon大官人 (@wanggy6) May 6, 2021
Meanwhile, DeFiPrime lashed out on the team via its Telegram feed. They complained about the complexities of using the new interface, noting that:
Add liquidity UI now requires a master’s degree to figure out how to price your liquidity position. It’s a huge step backward from the simplicity we had in v2.
With the fee problem still in full swing, Uniswap might have to wait until Ethereum’s Optimism introduces layer 2 scaling.
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