Uniswap V3 Concept of ‘Range Orders’ Overlaps with HipoSwap ‘Maker Pool’

UTC by Bhushan Akolkar · 3 min read
Uniswap V3 Concept of ‘Range Orders’ Overlaps with HipoSwap ‘Maker Pool’
Photo: Unsplash

While Uniswap has been claiming to bring “range orders” as a completely innovative concept, the fact is that it significantly overlaps with HipoSwap’s “Market Pool” feature launched six months back in September 2020.

Last week, the Ethereum-based decentralized exchange (DEX) Uniswap announced its much-awaited Version 3 upgrade timeline. Version 3 will bring along some of the very interesting features of multiple fee tiers, aggregated liquidity, and range orders.

However, the concept of “range orders” isn’t completely novel to the crypto world as it largely overlaps with how a HipoSwap’s “Maker Pool” functions – introduced by Gate.io on September 2020. UniSwap has emerged as one of the fastest-growing DEX platforms that currently dominate the DeFi space.

The concept of automated market makers (AMMs), flash loans, profit calculations, and time-weighted price oracles has given it unique recognition in the DeFi space. However, this is not completely the case with Uniswap V3’s “range order” feature. Although Uniswap has received a lot of praise from the industry, the feature isn’t its brainchild.

The “range orders” feature offered by Uniswap is certainly an upgraded version of the “limit order” feature in centralized finance (CeFi). In the DEX market, there’s a huge demand for laddered orders. Thus, UniSwap’s “range order” feature aims to solve the issue of capital utilization near the order book.

On the other hand, HipoSwap is a protocol launched by GateChain-based DeFi platform HipoDeFi. This protocol helps decentralized exchanges with low-slippage and high liquidity. Also, the “Maker Pool” concept for DEXs serves as a mechanism to optimize the AMM concept. This concept came into existence along with HipoSwap.

Drawing a Leaf from HipoSwap’s ‘Maker Pool’

As said, in September 2020, Gate.io introduced HipoSwap and its maker pool giving a new solution to the market. UniSwap’s “range order” concept is very much identical to HipoSwap’s Maker Pools but with some minor differences in the details of price settlements.

Thus, technically speaking, Uniswap introduced the “range orders” concept nearly six months after HipoSwap. Besides, there also have talks that Uniswap’s innovation is preceded by DODO in the DEX track. The press release accessed by CoinSpeaker notes:

“Uniswap V3 does not mention whether external oracles will be introduced, but DODO’s PMM model, which refers to quotes from external oracles, aggregates liquidity in LPs around the market price range.”

HipoSwap serves as the primary initiator of introducing new innovations to the AMM concept. Some of the major innovations of HipoSwap are:

  • Supporting single currency liquidity provision
  • Smoother trading curve
  • Lower gas costs

HipoSwap is dedicated to bringing further improvement to the DEX development process. DEXs currently faces major challenges of exclusive relationships between slippage and impermanent loss. However, improving one could lead to consequences for the other. Thus, HipoSwap will continue to work on bringing a common solution for the two.

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