Crypto Protocol Updates: A Plethora of Positive Changes
Uniswap, Chainlink, and Aave have made noteworthy changes to their software. Let's delve into these modifications and see who might be intrigued by them.
Uniswap Launches Revamped Liquidity Aggregator
Uniswap, one of the most well-known DEXs, has introduced an advanced liquidity aggregator and trading protocol, dubbed UniswapX (its working title was Uniswap V4). The roadmap for this forthcoming update was unveiled in early June, and by July 20th, the platform's developers announced the commencement of public testing for this upgrade.
What capabilities does the enhanced protocol bring?
- It merges multiple liquidity sources (like automated market makers) and lets third-party suppliers vie with major pools for transaction processing.
- It also offers a shield against MEV, targeting bots that employ front-running strategies on already initiated large-volume token transactions.
- It incorporates the gas fee into the transaction amount, enabling transactions without the need for ETH.
Who stands to gain from this update?
Those who were profiting from MEV manipulations might be disgruntled, as they're losing a reliable revenue stream. For the rest of the users, however, the update is undoubtedly advantageous: it bolsters liquidity while driving down commission costs.
Chainlink Introduces Cross-Chain Interoperability Protocol
Chainlink, a decentralized platform specializing in oracles within the Ethereum network, is constantly evolving. Its system interconnects smart contracts across different blockchains, enhancing interoperability.
Recently, the team announced they had initiated testing for a new cross-chain interoperability protocol. This protocol aims to improve communication between traditional banking systems and blockchain networks. For this initiative, Chainlink has partnered with SWIFT, the largest network for executing international money transfers.
SWIFT has been addressing the issue of blockchain compatibility for over a year, aiming to simplify customer settlements in tokenized assets. To this end, they entered into a partnership with Chainlink. The goal of this collaboration is to reduce overhead transaction fees while increasing their speed. Currently, the CCIP is undergoing closed testing in the Avalanche and Ethereum networks.
While there are no public reports about the new protocol as yet, the official SWIFT website states: "Chainlink will be used as an enterprise abstraction layer to securely connect the Swift network to the Ethereum Sepolia network, while Chainlink’s Cross-Chain Interoperability Protocol (CCIP) will enable complete interoperability between the source and destination blockchains."
Who might this update interest?
SWIFT's tech director has promised to reveal the testing outcomes by the year's end, so official announcements are still forthcoming. However, it's clear that this upgrade primarily piques the interest of traditional banking institutions. Its potential implications for regular crypto traders, particularly regarding the transfer of digital assets, are still a bit murky. But it's likely that if the final version proves successful, it will open up avenues for larger corporations to invest more securely in the digital industry – a definitively positive step forward.
Aave Unveils Refreshed Lens Protocol
Aave, a leading decentralized crypto lending platform that works with ERC-20 tokens, initially surfaced in 2020. Today, it's a heavyweight contender among DeFi protocols, measured by TVL.
The Lens Protocol, an innovative product designed by Aave's developers, is an NFT-centric protocol created for Web3-standard networks. Aave made headlines in May 2023 when it raised $15 million in an external funding round, aiming to augment the potential of decentralized social networks. The Lens update is the promising result that the founders revealed to their investors.
So what's in the toolbox of the refreshed protocol?
- It harnesses the power of smart contracts and NFTs to tokenize social data, transforming a user's post into a transferable asset that can be sold or moved across any social network built on the Lens platform.
- It instantaneously logs every user action on the platform through their generated NFT, democratizing access to this event.
- It provides an option to block other users, giving the ability to blacklist persistent spammers or potential fraudsters.
- It facilitates swift content migration between Lens apps, opening avenues for its monetization.
Web3 social networks' engaged audiences will undoubtedly appreciate this update. They now have the opportunity to turn a profit not just from crypto lending, but also from their creative endeavors.
On top of this, we're awaiting the Polygon 2.0 update. This forthcoming refresh promises to simplify the process of forging new chains within the network, integrate a novel model for community treasury management, and employ Zero-Knowledge Proofs (ZK-Proofs) for private transactions
