DoveSwap V3 - Exchange Review

DoveSwap V3 presents itself as the first concentrated-liquidity AMM on Polygon's zkEVM. The pitch is clear: high capital efficiency, low gas fees, and smart liquidity targeting. But the numbers don’t lie - what you get today is a bare-bones protocol with limited depth and almost no user traction.

What You Get

At its core, DoveSwap uses a vault-based model similar to Uniswap V3. That means LPs choose a price range, concentrate their liquidity within it, and earn more - theoretically. The implementation lives on Polygon zkEVM, so transactions are fast and cheap. But volume is low, and most pools barely move.

Available tokens? Four. Trading pairs? Five. Total value locked? About $160,000. That's less than many medium-sized farming pools on more mature chains. Volume? Roughly $4,000 per day. This is not yet a place for active traders or even passive yield seekers.

Fee Flow and LP Yields

DoveSwap generates around $7 in fees per day across all its pools. Protocol revenue clocks in at under $500 per year. For LPs, that’s almost nothing unless they’re perfectly positioned in the one or two active pairs. Concentrated liquidity only works if users show up. Right now, they haven’t.

Fees per pool vary based on volume, but the majority of traffic sits in one place: USDC-WETH. Other pools are stagnant. For LPs hoping to optimize, you’d need to rebalance often, watch price charts daily, and be prepared to exit fast if volatility breaks your range.

What Works

Transactions on zkEVM are cheap and settle quickly
Concentrated liquidity allows high theoretical returns
Smart contract architecture borrows from proven models
As one of the few DEXes on Polygon zkEVM, it's an early mover

What Doesn’t

Liquidity is extremely shallow, which makes slippage a real issue
There are no audits, bug bounties, or external reviews
Five trading pairs won’t attract serious traders
LPs carry most of the risk with little to no reward
Earnings are too low to justify active range management

Who It's For

DoveSwap V3 is not a general-purpose DEX. It’s a niche experiment aimed at:

Advanced LPs who want to test concentrated AMM mechanics
Builders or analysts watching early zkEVM infrastructure
High-risk DeFi users exploring capital-efficient deployments

If you’re looking to swap tokens quickly, farm passively, or access a large range of assets, this isn’t your venue.

The Risk Picture

Smart contract risk is high simply because the code hasn’t been tested under pressure. There’s no public audit. Thin liquidity opens the door to front-running and MEV strategies. And with so little volume, impermanent loss becomes a default rather than a possibility.

No fiat bridges. No cross-chain support. No secondary markets. It’s isolated, and that brings limitations.

Final Thought

DoveSwap V3 is early - maybe too early. It’s the kind of DEX that shows promise on paper but doesn’t yet offer meaningful activity. Until more liquidity flows in, and until real audits and safeguards are in place, it remains experimental. Interesting for testing. Risky for capital. And far from ready for the mainstream.