Uniswap V3 might be making its way to this L1 blockchain
- Uniswap was the numero uno DEX with a 24-hour volume of $984.47 million.
- It was the largest contributor to ETH’s burning activity in April.
World’s largest decentralized exchange (DEX) Uniswap [UNI] was considering a proposal to launch the third iteration of its protocol on the layer-1, proof-of-stake network, Fantom [FTM], in a bid to adapt and expand its reach to other blockchain ecosystems.
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The proposal was undergoing a “temperature check” governance vote, which was scheduled to conclude on 31 May.
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Uniswap in expansion mode
The proposal was put forward by Blockchain@Columbia, a Columbia University’s organization for distributed ledger technology, in conjunction with Fantom and Axelar, a cross-chain communication platform.
The proponents stated that since the expiration of Uniswap V3’s Business Source License (BSL) on 1 April, it has become easier for other players in the DeFi landscape to utilize V3 design in order to capture market share on other blockchains like Fantom.
Hence, in order to stay ahead of the curve, it was imperative for Uniswap to establish its presence on Fantom quickly.
Moreover, the effectiveness of Fantom as a fast, low-cost solution, was also cited as another major reason behind the expansion.
The proposal added that if the deployment goes through, Uniswap stands to gain 30% of the current DEX volume on Fantom. At the time of writing, Fantom was the sixth-largest chain in terms of DEX volume with trades worth $46.68 million getting settled in the last 24 hours, as per DeFiLlama.
Several proposals to expand Uniswap beyond Ethereum [ETH] have emerged in 2023. After successfully getting deployed on the BNB Chain, a go-ahead for Polygon [MATIC] zkEVM-V3 integration was recently given in April.
Uniswap remains DeFI’s crown jewel
Uniswap was the numero uno DEX in the Web3 space with a 24-hour volume of $984.47 million, more than half of the total volume on the second-ranked DEX, PancakeSwap [CAKE].
The dominance notwithstanding, volume on the DeFi behemoth has steadily declined since attaining record levels in March.
Crypto data aggregator CoinGecko revealed that Uniswap was the largest contributor to ETH’s burning activity in April, having burned a total of 21,479.9 ether in April 2023. The increase in burned ETH was fueled by a growing number of transactions involving memecoins.
1/ Which protocol burned the most $ETH? 🔥
As of April 2023, @Uniswap remained the largest protocol that burned the most $ETH, having burned a total of 29,333.8 ether.
Read the full study: https://t.co/GEdUPigeTp pic.twitter.com/mcs7yYZPaJ
— CoinGecko (@coingecko) May 24, 2023
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The governance token UNI, though, didn’t respond with enthusiasm to the new proposal. At press time, its was valued at $4.95, down 0.52% in the 24-hour period, per CoinMarketCap.