What is Uniswap v3 (Arbitrum)?

## What Is Uniswap (V3) (Arbitrum)? [Uniswap](https://coinmarketcap.com/currencies/uniswap/) is a [decentralized exchange](https://coinmarketcap.com/alexandria/glossary/decentralized-exchange-dex) (DEX) that pioneered the [automated market maker](https://coinmarketcap.com/alexandria/glossary/automated-market-maker-amm) (AMM) model. The introduction of the AMM allowed users to trade against a [liquidity pool](https://coinmarketcap.com/alexandria/glossary/liquidity-pool) offering a constant source of liquidity with its product formula. The V3 version of the exchange presents services to [Ethereum](https://coinmarketcap.com/currencies/ethereum/) [layer-two](https://coinmarketcap.com/alexandria/glossary/layer-2) solutions. The AMM model premiered in the V1 version of the exchange, with the V2 version allowing trading between different [ERC-20](https://coinmarketcap.com/alexandria/glossary/erc-20) token pairs instead of [swaps](https://coinmarketcap.com/alexandria/glossary/token-swap) between [ETH](https://coinmarketcap.com/currencies/ethereum/) and ERC-20 tokens. The consequence was reduced [slippage](https://coinmarketcap.com/alexandria/glossary/slippage), benefiting the evolution of the exchange. Furthermore, it introduced protocol fees to continue development. In the V2 version, [wrapped Ether](https://coinmarketcap.com/alexandria/article/what-is-wrapped-ethereum-weth) instead of native Ether was available for the first time as liquidity for token pairs. Improvements in the V3 version include unique price curves for [liquidity providers](https://coinmarketcap.com/alexandria/glossary/liquidity-provider-tokens-lp-tokens), allowing them to centralize their capital at desired prices to improve capital efficiency. Another feature implies the automatic capital removal if prices change significantly and exceed the LP’s price range. The V3 is the first version available on [Arbitrum](https://coinmarketcap.com/alexandria/article/what-is-arbitrum-the-ultimate-guide-to-the-arbitrum-ecosystem), a scaling solution for Ethereum that opens up a more affordable trading experience thanks to its significantly lower trading fees. ## Who Is the Founder of Uniswap (V3) (Arbitrum)? Hayden Adams, a former mechanical engineer at Siemens and Stony Brook University graduate, founded the decentralized exchange in November 2018. Uniswap Labs, the development company behind the DEX, was financed by [crypto VC funds](https://coinmarketcap.com/alexandria/article/what-are-the-top-crypto-venture-capital-firms) like Paradigm in a Series A, raising $11 million in the round led by ​​Andreessen Horowitz. ## When Did Uniswap (V3) (Arbitrum) Launch? V1 launched in November 2018. The improved V2 version hit the market in August 2020. The V3 version launched in May 2021 on Ethereum and on August 31, 2022, on Arbitrum. ## Where Is Uniswap (V3) (Arbitrum) Located? The headquarters of Uniswap Labs are in New York City. ## Uniswap (V3) (Arbitrum) Restricted Countries Uniswap has officially restricted the following countries from using its services: Belarus, Cuba, Iran, North Korea, Syria, Côte d'Ivoire, Liberia, Sudan, Zimbabwe, Iraq, and Iran. ## Uniswap (V3) (Arbitrum) Supported Coins List Since this is a [permissionless](https://coinmarketcap.com/alexandria/glossary/permissionless) decentralized exchange, any user is free to list tokens and provide liquidity to facilitate trading. The most liquid tokens, at the time of writing, include [stablecoins](https://coinmarketcap.com/alexandria/glossary/stablecoin) and wrapped tokens like [USDC](https://coinmarketcap.com/currencies/usd-coin/), [Wrapped BTC](https://coinmarketcap.com/currencies/wrapped-bitcoin/), [wETH](https://coinmarketcap.com/currencies/weth/), and [DAI](https://coinmarketcap.com/currencies/multi-collateral-dai/). ## How Much Are Uniswap (V3) (Arbitrum) Fees? The V3 version has a flexible fee mechanism. Stablecoin trading pairs are the cheapest, with a 0.05% fee. Standard non-correlated pools like ETH carry a fee of 0.30%, with other pairs priced at a fee of 1%. There is no more protocol fee, although it can be turned on through [governance](https://coinmarketcap.com/alexandria/glossary/governance). ## Is It Possible to Use Leverage or Margin Trade on Uniswap (V3) (Arbitrum)? Uniswap V3 does not offer [leverage](https://coinmarketcap.com/alexandria/glossary/leverage) or [margin trading](https://coinmarketcap.com/alexandria/glossary/margin-trading).

Uniswap v3 (Arbitrum) uses liquidity pools and an automated market maker (AMM) algorithm to facilitate trades. Liquidity providers deposit token pairs into pools and earn a share of trading fees. Prices are determined algorithmically based on the ratio of assets in each pool.

Uniswap v3 (Arbitrum) is a non-custodial decentralized exchange, meaning users retain control of their private keys and funds at all times. Smart contract risk is inherent in all DeFi protocols — always review audits and use appropriate position sizes.

Uniswap v3 (Arbitrum) operates on Arbitrum. Multi-chain support allows users to trade assets native to each supported chain without bridging.

Uniswap v3 (Arbitrum) was launched in 2021. Since then it has grown to offer 231 trading markets with $105.88M in 24-hour trading volume.