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Uniswap Leans into a Multichain Future—KKinda

Uniswap Leans into a Multichain Future—KKinda

According to a large delegate, Uniswap intends to “deploy everywhere” as the DEX seeks to expand its already dominant market share. 

The decentralised crypto exchange (DEXlatest)’s move to bolster that effort has been to deploy on a number of web3-oriented blockchains via Uniswap v3. 

According to Getty Hill, co-founder of the delegate, GFX Labs, the recent surge in blockchain deployment proposals is likely due to the expiration of Uniswap v3’s business source license (BSL) in the coming months. 

When Uniswap’s previous iteration, v2, first launched, Hill said there were numerous opportunities to fork its code and launch copycat protocols on different chains. 

“They’d just copy and paste the code, launch it, and slap their own token on it,” Hill explained to Blockworks.

Binance’s popular BNB chain is now one of the most recent—and prominent—such protocols in the works. Participants in Uniswap’s decentralised ecosystem have been supportive, with 80% of UNI (Uniswap’s token) holders voting in favor of the “temperature check” on Tuesday. 

Uniswap v3 focuses on concentrated liquidity; it will be available on the Ethereum mainnet in May 2021, and it has consistently ranked first in its segment of the overall market share.

UNI holders behind proposals

Since then, the product has been rolled out on a growing number of protocols, including Arbitrum, Optimism (OP), Polygon (MATIC), and Celo. 

According to Hill, the protocol likely decided to attach the BSL in order to avoid Uniswap’s previous problems this time. In other words, commercial uses of the code would require permission from the Uniswap community. 

“But in April, the gloves come off, and at that point, anyone can deploy and use [the code] however they want,” he explained.

All of this adds up to a bit of a free-for-all. 

“So, our strategy is to deploy everywhere because forking the protocol is much more difficult if there is already a Uniswap v3 deployment there.”

Uniswap has seen success by deploying on other chains. After three months on Polygon, the protocol had captured nearly half of its market share. 

According to Erin Koen, head of asset management at Avantgarde Finance, a number of Uniswap proposals in the works are likely to benefit both the DEX and the chain chosen for Uniswap deployment. 

Using BNB as an example, Koen stated that it is critical that Uniswap captures trade volume on those chains, especially as the DEX gradually implements its fee switch. Avantgarde Finance is another Uniswap delegate and the primary maintainer of the Enzyme protocol, a blockchain infrastructure that enables non-custodial, third-party asset management. 

“Eventually, we want to make Uniswap a self-sustaining protocol,” Koen said. “Instead of relying solely on this admittedly massive Treasury…”If there’s a lot of activity going on somewhere, we want to be a part of it,” Koen said.

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