goEthereum’s flagship project, Uniswap, now has its V3 contracts live on the layer-two scaling solution Polygon, following a community vote.
Benefits include lower gas fees, faster transactions, and increased users among others.
Popular Ethereum-based decentralized exchange (DEX) Uniswap is now live on leading layer-2 scaling solution Polygon (MATIC). This follows the majority vote (72 million UNI holders) from the Uniswap community in favor of Polygon’s team’s Nov. 20 proposal. The vote, which was closed just five days ago, with only 503,000 token holders in opposition.
The news was announced by Polygon on its official blog site. Uniswap V3 contracts have now been deployed on the Polygon proof-of-stake (PoS) Mainnet. Additionally, support for Polygon has been integrated with the AMM’s (automated market maker) official interface.
Uniswap V3 Contracts deployed on Polygon
According to Polygon, the deployment of Uniswap on Polygon was considered important for three major reasons. The first is that it acknowledges Polygon’s value in the Ethereum ecosystem, alongside the strides it has achieved this year.
The sidechain hosts 126 million users, and over 3,000 applications including Aave, Curve, 0x, Balancer, and 1inch. It has enabled 1.22 billion transactions in its lifetime and has also undergone multiple integrations. Currently, Polygon’s total value locked (TVL) stands at a staggering $5.2 billion. At some point this year, the number of active addresses on Polygon topped those of Ethereum.
The above achievements, Polygon notes, have resulted from “thousands of hours of relentless work and the undeterred support of the entire Ethereum community.” Therefore, deploying Uniswap, the top Ethereum application, is a strong recognition of these exploits.
Secondly, the move brings back the “original promise” Ethereum had to the crypto community – “a grand vision of an open, borderless economic system accessible to everyone.” Ethereum’s layer-1 has been plagued by high transaction fees, narrowing its utility to large token holders and high-value transactions. This has worked against the goal of inclusivity and democratization. Polygon offers open user access, relatively lower fees, and near-instant transactions, all of which benefit Uniswap.
Finally, the development reinforces Polygon’s position in the decentralized finance (DeFi) ecosystem. As evidenced by the above-mentioned network growth statistics, Polygon is the second-largest DeFi ecosystem in the industry, right after Ethereum layer-1. The addition of Uniswap works towards maintaining this reputation, especially since the DEX is considered a ‘money lego’ in DeFi.
Another reason for Uniswap’s launch on Polygon is the numerous potential use cases emanating from their collaboration. Such include more efficient price discovery, centralized exchange (CEX) trades rebalancing, and many more. The shift is also expected to attract more users.
Of note, Polygon has allocated $20 million in financial incentives for the initiative. Out of this, $15 million will be committed to long-term liquidity mining, while $5 million will be reserved for Uniswap’s overall adoption on Polygon.
MATIC at press time was valued at $2.64, just a few cents shy of its $2.70 all-time high. The token is also up 24.3 percent in the week and 69.3 percent up in the last month.
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