Okay, what about the governance, being a swap and I previously mentioned that we were talking about version two, what is version three? So let me talk about that, so Uniswaps basically has a governance token called UNI, and that was launched in September 2020. So the governance token very similar to COMP and that it is actually distributed to users to incentivize liquidity. So this is something that you get for actually supplying liquidity. So think of this, we've already talked about that the liquidity providers are making revenue from the trading that actually occurs with that 0.3% fee. They might be losing in terms of impermanent loss, but they are also gaining because they're being incentivized with the UNI token. Okay, so this is interesting that the UNI governance has some control over its own token distribution. Okay, so 43% of the supply is going to be vested over four years and there's a treasury that's controlled by the UNI governance. Okay, so it's interesting that every Ethereum address that had used Uniswap before the cut off date, and this was like a quarter of a million addresses, was given approximately 400 of these any tokens, so again, an airdrop. So again, this is a really interesting idea that's really important in decentralized finance, that the early users are being rewarded with effectively something like equity and at least the governance. So you've actually participated, and now we want you part of the community to determine the sort of things that are important in terms of the protocol and it's also a direct incentive mechanism to get people actually involved. So UNI was released, is traded also on centralized exchanges like coin base, and indeed you can see a the governance token for Uniswap here is incredibly valuable. So think of that 400 UNI given the current market price, that's quite a reward for participating early. And it's also the case that the AAVE and the Maker Token also are quite valuable. So if you look at the list of the top 25 Cryptos by market capitalization, you're going to see a number of governance tokens. So what about version 3? And version three is very recent, this was implemented on May 5, 2021. And let me tell you the key idea in version three, and the key idea is that the liquidity providers can allocate funds to their own customized range. Okay, so instead of having the full range when you allocate liquidity, you can actually narrow it. So effectively you've got these individualized price curves. So this is a great idea, and it's a great idea because it's very similar in traditional finance to this idea of a limit order system. Now, for the user, everything is all grouped together, so the user doesn't see this, but for the supplier of the capital, you can choose a range that is something that you're comfortable with. So again very much like a limit order book. So very good idea, as of this production, it's still the case that the most of the pairs are version two, but the volume on version three is already exceeded of version two, so this is just the next stage and the evolution of decks. So let me summarize, this is a critical component of the DeFi ecosystem, so the ability to trade algorithmically at any time. So it doesn't matter when you do this, the ability to basically supply liquidity and get paid for it in terms of the trading fees that you get plus the incentives from the governance token. And this idea of a flash swap, which is a very significant innovation. So this is something that allows essentially anybody to do arbitrage. So again think of this and look arbitrage is well known, who does arbitrage, like hedge funds? So it's just not usually available to the average person. But this is again the democracy of decentralized finance, that if you don't have any capital, no big deal, you can make that arbitrage profit. And in doing that, in doing this arbitrage, the prices move towards like a fairer price, which is good for everybody. So again, let's see what, Uniswap actually does in terms of the problems perhaps the most striking thing, at least for me, is that, that anybody can start a trading pair, that's to me just really amazing. So you've got a new token, well, no problem, you can use Uniswap, and you can see the liquidity pool, and you can do it very quickly. Okay, so this is so different than centralized finance. Of course, anybody can be a liquidity provider and earn the fees and the incentives. The automated market maker, or decks, is a very significant innovation in the idea of exchange, you get rid of the human market maker, you get rid of all of the infrastructure associated with that, you get rid of the spread, get rid of the risk, so this is a very powerful idea. And this is pluggable into any application within the Ethereum landscape. Again, and I showed you an example of using an alternative decks, and in a single transaction, taking advantage of a price deviation. And of course, and it's becoming a little redundant, everything is transparent, so for the pool, you know exactly what's in it at any point in time
