Why Uniswap V3?
A common ERC404 use-case is to utilize Uniswap as both an exchange and mint platform. Common ERC721 projects have long faced issues with price discovery and liquidity, some examples of which are as follows:- Mint prices are set too low, forcing slow price discovery on illiquid secondary markets
- Mint prices are too high killing projects along with all price discovery
- Bonding curves tend to be too constraining given the above, often resulting projects not minting out
- Illiquid markets tend to prevent active or engaging speculation
- Botting / sniping can create unfair releases requiring large technical overhead to remediate
Approaching a Uniswap V3 Launch
It’s important to consider Uniswap V3 as a novel mint mechanism that requires some degree of planning. You’ll want to define a curve along which initial supply is pooled, moving up to a full range LP. An example launch plan for a 10k collection could be as follows:- 2500 tokens provided in a range from 0.01 - 0.02 eth
- 2500 tokens provided in a range from 0.02 - 0.05 eth
- 5000 tokens provided in a full range of 0.05+ eth