Uniswap Leans Into Multichain Future — Kinda

An uptick in blockchain deployment proposals on the DEX could be attributed to a shift around Uniswap’s commercial usage provisions

article-image

Vladimir Kazakov/Shutterstock.com modified by Blockworks

share

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 [we] 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.”

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. 


Don’t miss the next big story – join our free daily newsletter.

Tags

Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

Mon - Wed, March 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience: Attend expert-led panel discussions and fireside chats Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts.

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Top Icon.png

Research

Osmosis thrived in H2 2023 on the back of increased DeFi activity deriving from recently launched Cosmos-related projects and better market conditions. With new value accrual mechanisms for the native token, Osmosis is well-positioned to continue its strong performance in 2024.

/

article-image

Though the opposing flow trend is likely to slow over time, industry watchers note, bitcoin fund assets could one day eclipse the $90 billion gold ETF space

article-image

Celestia had the first mover advantage. EigenDA has staked ether. What sets Avail apart?

article-image

Bitcoin moved 1% higher Monday morning in New York, Matrixport analysts say $62,000 could happen next month

article-image

It’s hard to believe right now that crypto — even with all of its flexibility and massive capabilities — could ever be like cash on the internet

article-image

Michael Saylor announced Monday morning that MicroStrategy bought 3k more bitcoin after the X account was compromised over the weekend

article-image

Plus, Pudgy Penguins grows its brand and a group of Autoglyphs sell for $14.5 million