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Uniswap V1 was coded in Vyper.

They switched to Solidity for the V2.

Why is it so? Was vyper lacking functionalities that would have made impossible to code Uniswap V2 with it?

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There were several audits that found important issues. Both audits won't recommend vyper for use in production. Then the Ethereum Foundation decided to support an alternative implementation in rust, while the original python implementation continues development independently.

Vyper is an interesting alternative to solidity but the lack of a production ready compiler makes it a difficult choice.

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