The Uniswap Community Research Program delivers streaming insights on the latest Uniswap-related research. These curated insights are delivered by Unit Zero Labs in conjunction with the Anthias Labs and the Uniswap Foundation. Here are the top insights and charts from challenge #1. Check out the homepage for links to the program and past challenges.
Gas Subsidies
Lower transaction costs are not necessarily associated with large increases in LP fees. Charliemarketplace.eth points out that popular pools like ETH-stable and BTC-stable pairs witness substantial trading volume and are less sensitive to gas price fluctuations to niche pools. His chart shows the impact of daily gas prices on pool fees across pool types, see the full analysis here.
Kida also shows further how transaction fees tend to only affect the bottom end of the transaction size distribution.
Further exploration: consider different subsidy strategies for pools with long-tail assets, given their heighten sensitivity to gas price fluctuations. Gas subsidies should be steered away from pools affected by arbitrage and MEV activities, since they are less likely to have an impact.
v3 Pool Growth
Matiasac.eth, publishing in OurNetwork this week, writes:
”Uniswap V3's concentrated liquidity model drives efficiency, as seen in $23.7B USDC-WETH and $9.4B WETH-USDT volumes — over 50% of the $44B across top 7 assets in Q2 2024. Adoption of V3 pools with varied fees, like $7.2B USDC-USDT, outpaces V2, reflecting Uniswap's innovation improving liquidity across decentralized trading, especially for the largest pools.”
While v3 pools continue to grow market share, Matias notes how v2 pools still remain resilient, popular particularly for meme token pools.
Impact of Account Abstraction
Defining account abstraction-related activities on chain is tricky and something we are looking to find a solution for. This is undoubtedly an area for further exploration.
Further exploration on Gas Subsidies
Further analysis on router patterns (including custom MEV bots), time of day, and filtering to "retail" level nonces (<1,000) could yield interesting insights.
Although overall, gas prices everywhere except ETH are so low that subsidies do not seem useful for increasing swap volume on say Base, OP, Arb, etc. If the goal is to increase liquidity, the problem is moreso the lack of tooling for being smart about concentrated LPs combined with lack of automations for stop losses on impermanent loss.
Explore more analyses:
@kida_sollinked: Uniswap Gas Fee Analysis
@matias_andrade_c: Uniswap uptrend continues with $71B+ in Q2 Volume
@Greatafonso: Impact of Account Abstraction on Uniswap LP Transactions and User Behavior
@charliemarketplace: Potential pool targets for gas subsidies
