UniswapV3-Arbitrum is a decentralized exchange protocol built on the Arbitrum blockchain. It aims to provide fast and low-cost trading for Ethereum-based tokens. UniswapV3-Arbitrum was developed by Hayden Adams, the founder of Uniswap. Uniswap itself was launched in 2018 and has gained popularity as a leading decentralized exchange platform. The "Uniswap" name comes from the Latin phrase "Unus Solum", meaning "only one". It offers users greater control, flexibility, and efficiency in their token swaps.
UniswapV3-Arbitrum offers several benefits compared to its direct competitors. One key advantage is its scalability. By utilizing the Arbitrum technology, UniswapV3-Arbitrum significantly improves the transaction throughput and reduces fees compared to its competitors.
Arbitrum is a layer 2 scaling solution that operates on top of the Ethereum network. It enables faster and more cost-effective transactions by processing them off-chain and then submitting the final results to the Ethereum blockchain. This means that users of UniswapV3-Arbitrum can enjoy the benefits of high-speed transactions and lower fees, without compromising on the security and decentralization of the Ethereum network.
Another benefit of UniswapV3-Arbitrum is its enhanced user experience. With the Arbitrum technology, users can execute trades on Uniswap faster and with more efficiency. This is particularly advantageous for traders who rely on quick execution and want to take advantage of volatile market conditions.
Additionally, UniswapV3-Arbitrum offers access to a wide variety of tokens and liquidity pools, providing users with a diverse range of trading opportunities. This gives traders the flexibility to explore different markets and easily swap between tokens.
In summary, UniswapV3-Arbitrum offers improved scalability, faster transactions, lower fees, and an enhanced user experience compared to its direct competitors. These advantages make it an attractive choice for users who value efficiency and cost-effectiveness in their decentralized trading activities.
UniswapV3-Arbitrum is built on the underlying technology of blockchain and operates on the Ethereum network. It leverages the Arbitrum protocol to increase scalability and reduce gas fees.
Arbitrum is a Layer 2 scaling solution that aims to enhance the performance of Ethereum by processing transactions off-chain and submitting them to the Ethereum mainnet as a batch. This leads to faster transaction times and significantly lowers fees compared to performing transactions directly on the Ethereum network.
UniswapV3-Arbitrum combines the advantages of both UniswapV3 and Arbitrum to provide users with a seamless decentralized trading experience. It allows for the efficient swapping of ERC-20 tokens by utilizing liquidity pools, which are created and managed by users.
The functioning of UniswapV3-Arbitrum involves several key steps. First, liquidity providers deposit tokens into a liquidity pool. These tokens are then used to facilitate the trading of different assets. Traders can swap between tokens directly from the liquidity pool, with prices determined by an automated market-making algorithm.
UniswapV3-Arbitrum maintains liquidity and ensures competitive prices through the concept of concentrated liquidity. Liquidity providers can now define price ranges for their capital, offering more control and flexibility compared to previous versions.
Overall, UniswapV3-Arbitrum enhances the decentralized trading experience by leveraging the power of blockchain technology, utilizing layer 2 scaling through Arbitrum, and providing efficient liquidity management through UniswapV3's concentrated liquidity concept.
DIA fetches trade data from UniswapV3-Arbitrum by utilizing its comprehensive data management strategy. For decentralized exchanges like Uniswap, DIA collects data directly from the blockchain itself. It achieves this by subscribing to swap events in liquidity pools on the respective blockchain. In the case of UniswapV3-Arbitrum, DIA captures live trading data by retrieving information from the Arbitrum blockchain.
By accessing the blockchain, DIA ensures data accuracy and reliability, as the information is verified and recorded on the blockchain. This approach allows DIA to provide highly accurate and customizable price feeds for cryptocurrencies traded on UniswapV3-Arbitrum.
DIA's process of scraping trade data from DeFi and NFT exchanges follows a similar approach. For centralized exchanges, like Coinbase, Kraken, and Binance, DIA directly collects trades from exchange databases using Rest APIs or WebSocket APIs. The data collection frequency varies depending on the exchange, ranging from 1 to 7 seconds.
When it comes to NFT marketplaces, DIA captures live trading data by retrieving information from the smart contracts of the integrated marketplaces. This ensures the inclusion of all NFT transactions happening in real-time on these platforms, providing comprehensive and precise data.
Overall, DIA's data management strategy covers the entire data journey, ensuring the sourcing of granular trade data from various exchanges and marketplaces. By leveraging direct access to data sources, DIA is able to provide highly accurate and reliable price feeds for users of its services.
When building price oracles with UniswapV3-Arbitrum trade data, DIA follows a specific process depending on the type of exchange, whether it's DeFi or NFT.
For DeFi exchanges, such as UniswapV3, DIA first cleans and detects outliers in the trade data. This step involves removing trades with prices that deviate significantly from the market price to ensure reliable data. The cleaning process includes applying an Interquartile Range (IR) filter, which identifies and excludes trades that fall outside an acceptable range relative to the interquartile range. Trades within the "middle" quartiles are then used for further processing.
Next, DIA applies price determination methodologies to calculate the final price from the remaining data points. One such methodology is the Volume Weighted Average Price (VWAP), which considers the different volumes of trades and calculates a weighted average price.
For NFT exchanges, DIA focuses on determining the floor price of NFT collections. The process involves cleansing the on-chain trade data to exclude outliers and manipulation techniques. DIA offers various pricing methodologies for determining the floor price, including the Floor Price methodology that provides the lowest sale price recorded on the blockchain. However, DIA acknowledges that the floor price can be manipulated by malicious actors using techniques such as wash trading and sweeping the floor.
To combat these manipulations, DIA offers advanced methodologies such as the Moving Average of Floor Price, which calculates the moving average of the collection's floor price. Additionally, DIA applies an interquartile range outlier detection filter to filter out malicious behavior.
It's important to note that DIA is open to discussing custom filters and methodologies to cater to specific use cases.
Instead of distributing pre-calculated data feeds, DIA covers the whole data journey from individual trade collection, and computation to the last mile of the feed delivery.