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🚀 Uniswap Votes to Launch V3 on zkSync

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Uniswap + Layer 2s

🚀 Uniswap Votes to Launch V3 on zkSync

Leading DEX to Deploy on Layer 2 After Raising $165M in Funding Round

By Samuel Haig

PROPOSAL Acting on a governance proposal by students from the University of Pennsylvania, Uniswap v3, the top decentralized exchange by trade volume, will deploy on the zkSync Layer 2 network following a vote on Oct. 14. 



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Majority Of Reserves Allocated To U.S. Treasury Bills

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DeFi Fundraising

🦄 Uniswap Fulfills its Unicorn Destiny with $165M Funding Round

Leading DeFi Player Joins Elite Club of $1B+ Ventures as Members Deploy DEX on Another Network

By Tarang Khaitan

The DeFi company famed for its unicorn logo has finally become a real life unicorn. On Thursday, Uniswap Labs, the company behind the leading DEX Uniswap, raised a whopping $165M in a Series B fundraising round, according to an announcement


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📉 Arrakis Loses Mojo as User Pulls $300M From Vault Provider

Automated Liquidity Protocol Struggles with ‘Incredibly Complicated’ Model

By Samuel Haig

Arrakis Finance, an automated liquidity management protocol, is sliding down the DeFi rankings.

On Oct. 13, 0xngmi, a prominent crypto influencer and contributor to web3 analytics website, DeFi Llama, flagged that a user removed around $300M from Arrakis Finance’s DAI/USDC vault. The withdrawal reduced the pool’s TVL by more than 40% from $800M.

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Arrakis, which is apparently named after the desert planet in Frank Herbert’s sci-fi classic Dune, provides automated vaults designed to bolster profits and minimize risks for Uniswap v3 providers. 

The vaults automatically rebalance and compound liquidity positions, offering a hands-off alternative to what is otherwise an intensive trading strategy.

Challenging Months

The $300M withdrawal compounds a challenging couple of months for Arrakis Finance, which leverages the Uniswap v3 decentralized exchange.

The project’s TVL has lost half its value since August and is now worth $856.5M, according to DeFi Llama.

Before its recent troubles, Arrakis was  one of the few DeFi protocols to grow during the bear market. 

The project launched in mid-2021 and quickly built up momentum. It started 2022 with more than $131M in its smart contracts and grew 13-fold over the next eight months. 

Concentrated Liquidity

Yet Arrakis’s growth hinges on increasing capital being deployed to provide liquidity to Uniswap v3. And the complexity of the model is becoming an issue.

Uniswap v3 pioneered concentrated liquidity within the decentralized exchange sector. Uniswap v3 allows liquidity providers to select specific price ranges within which their assets are deployed to settle trades and collect fees. 

Prior to v3, all assets provided to DEXs by liquidity providers were always used to settle trades regardless of price, resulting in inefficient capital provision and increased risks of divergent loss.

However, recent research from the Swiss Federal Institute of Technology found that providing liquidity on Uniswap v3 is “incredibly complicated,” warning that “retail traders do not stand a chance” at competing with sophisticated and institutional entities.

High Returns

“Obtaining high returns as a liquidity provider on Uniswap V3 is a highly complicated undertaking requiring active management and a good know-how,” the institute said. “The introduction of Uniswap V3 has thus turned liquidity providing into a playing field for sophisticated investors where retail traders must be wary to avoid risking significant losses. Retail traders… should therefore restrict themselves to simple strategies that yield only small returns.”

The complexity associated with manually providing liquidity to Uniswap v3 paved the way for protocols offering automated liquidity management. 

Despite its struggles, Arrakis continues to dominate its corner of DeFi. 

A competitor, Visor Finance, launched in mid-2021 and peaked with a nearly $25M TVL in December. However, it failed to recapture market share after being rocked by an exploit that drained $8.2M from the protocol on Dec. 21. Visor now holds just $3.1M in locked assets, according to Stelareum.

Charm Finance similarly enjoyed a strong growth trajectory after launching automated liquidity management vaults shortly after Uniswap v3’s launch. It peaked with a TVL of $13M in November 2021, but suffered amid the 2022 bear trend. Its TVL is now just $2.1M, according to DeFi Llama.



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