can you help me to understand the main difference between Uniswap V3 and Uniswap V2 in terms of technology and liquidity.
Also, is it legal to copy the Uniswap contract. I see lots of project just clone their smart contract and build UI, i.e., pancakeswap, sushiswap, etc.
Thank you.
For your two questions,
Actually, there are lots of difference and also improvement of V3 compared to V2. Here are some good remarks:
Technology: Uniswap V3 use concentrated liquidity, multiple fee tiers, and optimized slippag, allowing liquidity providers to focus their liquidity on specific price ranges with flexibility. This enhances a lot the capital efficiency
Scalability: Uniswap V3 utilizes more efficient algorithms, enabling it to handle increased transaction volume without compromising performance.
Enhanced market depth: Uniswap V3's ability to concentrate liquidity on specific price ranges provides deeper market liquidity, especially during periods of high volatility.
It is illegal to fork the Uniswap before their license expiry date. You can read in details in this link: https://docs.uniswap.org/contracts/v3/guides/governance/liscense-modifications. After the license expires, you are free to fork Uniswap to your architecture.
In Uniswap V3, LPs can choose how much of each token they want to deposit, and what price range they want to provide liquidity for. LPs can also concentrate their liquidity within a narrow price range, which increases their capital efficiency and fee earnings.
