- 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 has more than quadrupled.
Although the hype surrounding V3 has lessened a bit recently after the official announcement was made a little over a week ago, Uniswap recently released a new record. The decentralized exchange outperformed Bitcoin in transaction fees in 24 hours and paid more than $ 36 million to liquidity providers. And with only one month left until the launch of Uniswap V3 on May 5th, 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 launch of Uniswap V3. Uniswap founder Hayden Adams tweeted “big eyes” on an xToken project announcement announcing xU3LP, a “convenient, fungible solution for delivering Uniswap V3 liquidity”.
👀 https://t.co/exMXS9HY0n
– @ Hayden Adams @ (@haydenzadams) March 31, 2021
As Swope explained, the xToken protocol provides an ERC20 stakeout system to simplify the complexity of DeFi. The protocol does this by creating packaged versions of popular DeFi tokens, so users can simply buy a single set-and-forget ERC20 that automatically manages liquidity and control via batch deposits.
Uniswap V3 could possibly use this mechanism. To back up his assumption, the YouTuber referred to the Uniswap V3 blog post, in which the Uniswap Labs team stated the following:
Instead, LP positions are represented by non-fungible tokens (NFTs). However, common joint positions can be made fungible via peripheral contracts or other partner protocols (ERC20).
The xToken protocol could thus become a partner protocol for the new NFT-LPs from Uniswap, as well as Alchemist Coin. Swope found a reference to this in the Uniswap V3 whitepaper which states:
Alternatively, anyone can create a peripheral contract that includes an individual liquidity position (including fees charged) in a non-fungible ERC-721 token.
“That’s exactly what Alchemist Coin does,” said Swope. And as he further explained, Uniswap Labs could implement this together with the “community” after the start of V3, as announced in the blog post mentioned. Both altcoins could benefit massively from this, Swope concluded.
As the V3 countdown continues, I would only expect to hear good things about these two coins.
xToken (XKT) was ranked 2407th by market cap at the time of writing (according to CoinMarketCap) and was trading at $ 1.15, with its price rising 464% over the past 7 days. The price didn’t skyrocket, however, until Hayden Adams posted his tweet on March 31. Before that, XKT was trading at $ 0.27.
Alchemist coins can only be purchased through Uniswap at the moment, with CoinMarketCap and CoinGecko not even listing the token yet.
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