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The long-awaited third iteration of the decentralized exchange protocol Uniswap went live on Wednesday.

Unveiled in March, Uniswap v3 aims to make the on-network exchange of tokens drastically more capital-efficient. As reported at the time, the design hones in on a capability called concentrated liquidity by which liquidity providers (LPs) can make markets within customized price ranges. 

As The Block Research’s Mika Honkasalo said during a post-announcement appearance on The Scoop podcast: “I think this is why Uniswap really had nowhere to go in their design except move towards this sort of active liquidity provision because that’s something that works with traditional markets.”

In addition, the Uniswap team said that Uniswap v3 would be deployed at later date on Optimistic Rollup, a layer-two protocol intended to drive down transaction costs.

Data collected by The Block shows that Uniswap continues to be the dominant Ethereum-based decentralized exchange, pulling in approximately $51 billion in volume during the month of April. 

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