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    Ethereum DeFi protocol overview (Uniswap-v3, Sushiswap, Balancer, and curve)

    Ethereum DeFi protocol overview (Uniswap-v3, Sushiswap, Balancer, and curve)

    Feb 25, 2024 - Uniswap v3, released in May 2021, marks the third iteration of the Uniswap decentralized exchange protocol. This version introduces the concept of concentrated liquidity, enabling liquidity providers to focus their funds on specific price ranges. It also offers multiple fee tiers to cater to various risk preferences and dynamically adjusts fees based on liquidity levels. Each liquidity position is represented as a non-fungible token (NFT), granting liquidity providers precise control over their contributions. Uniswap v3 aims to enhance trading by minimizing slippage and maximizing capital efficiency, while also integrating with layer 2 scaling solutions for reduced costs and improved scalability. SushiSwap is a decentralized exchange forked from Uniswap. It offers similar functionality but also includes additional features such as yield farming, staking, and governance through its native token, SUSHI. SushiSwap aims to incentivize liquidity providers and create a more community-driven ecosystem. Balancer is a DeFi protocol that enables the creation of customizable liquidity pools with multiple tokens. Unlike traditional automated market makers that maintain a fixed token ratio, Balancer allows for pools with varying token weights. This flexibility enables portfolio management, token trading, and arbitrage opportunities. Balancer also provides opportunities for liquidity mining and governance through its native BAL token. Curve Finance is a decentralized exchange optimized for stablecoin trading. It is designed to provide low-slippage swaps between similar assets, primarily stablecoins like USDC, DAI, USDT, and others. Curve achieves this through specialized bonding curves tailored for stable assets, resulting in lower trading fees and improved capital efficiency for stablecoin liquidity providers.

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