Uniswap Set to Expand by Deploying v2 on Multiple Blockchains
Uniswap, the popular decentralized exchange (DEX), is gearing up for expansion with the deployment of Uniswap v2 on several blockchains. This move aims to integrate with chains that already support Uniswap’s latest protocol, Uniswap v3, including Optimism, Arbitrum, and Base. The proposal has received overwhelming support, with a whopping 10 million UNI tokens cast in favor. However, it still needs to meet the Uniswap DAO’s 40 million UNI token quorum to be considered viable.
The primary goal behind deploying Uniswap v2 on these blockchains is to recapture liquidity by offering better execution for small token swaps and also to combat unsafe clones that have flourished in its absence. While Uniswap v3 is already available on various chains, Uniswap v2, which launched in May 2021 and has achieved a market size of $1.9 billion along with processing $465 billion in token swaps, has been exclusive to Ethereum until now.
Despite the potential benefits of expanding to multiple blockchains, some members of the Uniswap community have raised concerns about liquidity fragmentation that may arise from simultaneously deploying both v2 and v3 on these chains.
Prior to the on-chain vote, the proposal had undergone an off-chain temperature check, which garnered approval from DAO delegates. This preliminary vote was conducted to gauge the community’s sentiment towards the proposal. However, due to technical issues related to smart contract uniformity, the current on-chain vote has been delayed but aims to finalize the expansion plan.
Uniswap’s move to deploy Uniswap v2 on multiple blockchains comes as a strategic step towards strengthening liquidity and countering copycats while expanding its reach beyond Ethereum. The final decision will depend on whether the proposal meets the requirements set by the Uniswap DAO in terms of the total number of participating UNI tokens.
Analyst comment
Positive news. By deploying Uniswap v2 on multiple blockchains, Uniswap aims to recapture liquidity, offer better execution for token swaps, and combat unsafe clones. However, concerns about liquidity fragmentation have been raised. The final decision will depend on meeting the Uniswap DAO’s token quorum. Expect increased market usage and expansion beyond Ethereum if the proposal is approved.
