- The xToken protocol and Alchemist Coin could become partner protocols for Uniswap V3.
- After Uniswap founder Hayden Adams retweeted “big eyes” on an xToken announcement, the XKT price more than quadrupled.
Even though the hype around V3 has died down a bit lately after the official announcement was made a little over a week ago, Uniswap recently posted a new record. The decentralized exchange surpassed Bitcoin in terms of transaction fees within 24 hours, paying over $36 million to liquidity providers. And with just one month to go until Uniswap V3 launches on May 5, the hype could also boost UNI’s price pretty soon.
But as Tyler Swope aka “Chico Crypto” explained in a new video, two previously unknown altcoins could also benefit from the Uniswap V3 launch. Uniswap founder Hayden Adams retweeted “wide eyes” regarding an announcement by the xToken project announcing xU3LP, a “convenient, fungible solution for providing Uniswap V3 liquidity.”
— Hayden Adams 🦄 (@haydenzadams) March 31, 2021
As Swope explained, the xToken protocol provides an ERC20 staking system to make the complexity of DeFi simple. The protocol does this by creating wrapped versions of popular DeFi tokens, so users can simply buy a single ‘set-it and forget-it’ ERC20 that automatically handles liquidity and governance via batching deposits.
Uniswap V3 could possibly fall back on this mechanism. To support his assumption, the YouTuber refers to the Uniswap V3 blog post in which the Uniswap Labs team stated:
Instead, LP positions will be represented by non-fungible tokens (NFTs). However, common shared positions can be made fungible (ERC20) via peripheral contracts or through other partner protocols.
The xToken protocol could thus become a partner protocol for Uniswap’s new NFT LPs, as could also Alchemist Coin. Swope found a hint for this in the Uniswap V3 whitepaper, where it is stated:
Alternatively, everyone can create a periphery contract that wraps an individual liquidity position (including collected fees) in an ERC-721 non-fungible token.
“This is exactly what Alchemist Coin is doing,” Swope said. And as he further explained, Uniswap Labs could implement this together with the “community” after the launch of V3, as announced in the said blog post. Both altcoins could benefit massively from this, as Swope concluded.
As the V3 countdown continues, I would only expect to hear good things from both of these coins.
xToken (XKT) was ranked 2407th by market cap at the time of writing (according to CoinMarketCap) and was trading at $1.15, with a price increase of 464% in the last 7 days. However, the price did not see a steep climb until Hayden Adams posted his tweet on March 31. Before that, XKT was trading at $0.27.
Alchemist coin can currently only be purchased through Uniswap, with CoinMarketCap and CoinGecko not even listing the token at this time.