Uniswap (UNI), one of the most popular decentralized exchanges (DEXs) on Ethereum, has announced that it will launch its version 3 (V3) on Optimism, a layer 2 scaling solution, on January 26.

This is a major milestone for both Uniswap and Optimism, as it will enable faster and cheaper transactions for users and liquidity providers, while also reducing the congestion and gas fees on the Ethereum network.

What is Uniswap V3?

Uniswap V3 is the latest iteration of the Uniswap protocol, which introduces several new features and improvements, such as:

- Concentrated liquidity: This allows liquidity providers to specify custom price ranges for their pools, instead of providing liquidity across the entire price spectrum. This means they can earn more fees with less capital, while also having more control over their exposure to price movements.
- Multiple fee tiers: This allows liquidity providers to choose different fee levels for their pools, depending on the expected volatility of the pair. This means they can optimize their returns based on their risk preferences and market conditions.
- Oracles: This…