Uniswap Leans Into Multichain Future – Kinda

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Uniswap is look­ing to “deploy every­where,” accord­ing to a siz­able del­e­gate, as the DEX looks to dou­ble down on its already dom­i­nant mar­ket share.

Deploy­ing on a num­ber of Web3-ori­ent­ed blockchains via Uniswap v3 has been the decen­tral­ized cryp­to exchange’s (DEX) lat­est move to bol­ster that effort. 

The recent uptick in blockchain deploy­ment pro­pos­als like­ly stems from Uniswap v3’s busi­ness source license (BSL) expir­ing in the next few months, accord­ing to Get­ty Hill, the co-founder of the del­e­gate, GFX Labs.

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

“They would just copy and paste the code, launch and slap their own token on it,” Hill told Blockworks.

Binance’s pop­u­lar BNB chain is now one of the most recent — and one of the most promi­nent — such pro­to­cols under con­sid­er­a­tion. Par­tic­i­pants in Uniswap’s decen­tral­ized ecosys­tem have been in favor, con­sid­er­ing some 80% of UNI (Uniswap’s token) hold­ers on Tues­day vot­ed in favor of the “tem­per­a­ture check” around the decision. 

Uniswap v3 focus­es on con­cen­trat­ed liq­uid­i­ty; it deployed on Ethereum main­net in May 2021; and it has con­sis­tent­ly ranked first in its slice of over­all mar­ket share. 

UNI holders behind proposals 

The prod­uct has since been rolled out on a grow­ing num­ber of pro­to­cols new to its plat­form, includ­ing Arbi­trum, Opti­mism (OP), Poly­gon (MATIC) and Celo.

In an effort to side­step Uniswap’s pre­vi­ous woes this time around, accord­ing to Hill, the pro­to­col like­ly made the deci­sion to attach the BSL. Mean­ing, in oth­er words, that com­mer­cial uses of the code would require con­sent from Uniswap’s community. 

“But in April, the gloves come off — and, at that point, it would be free reign for any­one to deploy and use [the code] whichev­er way they want,” he said. 

It all adds up to a bit of a free for all. 

“So, the strat­e­gy that our­selves and the foun­da­tion came to the con­clu­sion with is that — small chain, big chain, bad chain, good chain — we’re deploy­ing every­where — because it’s much hard­er to fork the pro­to­col if there’s already a Uniswap v3 deploy­ment there.”

— Hill

Deploy­ing on oth­er chains has so far borne fruit for Uniswap. After launch­ing on Poly­gon for three months, the pro­to­col man­aged to cap­ture almost 50% of its mar­ket share. 

Erin Koen, ​​head of asset man­age­ment at Avant­garde Finance, said that a num­ber of Uniswap’s pro­pos­als in progress are poised to like­ly ben­e­fit the DEX itself — as well as the chain cho­sen for Uniswap deployment. 

Draw­ing on BNB as an exam­ple, Koen said it’s cru­cial that Uniswap cap­tures trade vol­ume on those chains, espe­cial­ly as the DEX even­tu­al­ly turns on its fee switch. Avant­garde Finance is anoth­er Uniswap del­e­gate and acts as the lead main­tain­er of the Enzyme pro­to­col, a blockchain infra­struc­ture that allows for non-cus­to­di­al, third-par­ty man­age­ment of pooled assets. 

“Even­tu­al­ly, we want to turn Uniswap into a pro­to­col that can sus­tain itself,” Koen said. “Rather than just rely on this admit­ted­ly mas­sive trea­sury … If there’s vol­ume hap­pen­ing some­where, we want to be a part of it,” Koen said. 


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