Uniswap v3 Prepared for Layer-two Scaling on Arbitrum and Optimism
The Uniswap community voted in support of launching the prime decentralized exchange’s v3 iteration on layer-two scaling solution, Arbitron.
Uniswap’s inventor, Hayden Adams, announced the vote on May 27, disclosing the proposal’s governance vote obtained d 41.35 million votes in favor and zero opposing votes from UNI token holders. Uniswap is now setting up layer-two implementation on both Arbitrum and Optimism.
The @Uniswap community has spoken with overwhelming support in favor of an Arbitrum deployment of Uniswap v3! So far:
0 UNI https://t.co/esdxa2HIIC
— Hayden Adams 🦄 (@haydenzadams) May 26, 2021
The world’s largest decentralized exchange (DEX) on Ethereum, UniSwap v3, now surpasses the UniSwap v2 and Bitcoin in daily volumes. Hayden Adams observed the move, and he said that v2 and v3 are earning more daily and weekly fees than Bitcoin miners.
Uniswap is a permissionless, decentralized exchange that uses a relatively new trading model called an automated liquidity protocol. It is also completely open-source, allowing anyone to copy the code to create their decentralized exchanges.
Users can also list tokens on the exchange for free. Regular centralized exchanges are profit-driven and charge very high fees to list new coins. In the past seven days, V3 has expedited over $4.6 million in volume.
Since the launch of UniSwap v3 on May 5, 2021, it has lived up to its promise of delivering superior capital efficiency than its previous incarnations, with v3 surpassing v2 by daily volume despite currently representing 26% of v2’s total value locked.
In a series of tweets, Adams said that the UniSwap team has already begun work to support and deploy UniSwap v3 smart contracts on Arbitron.
He said that work is already in progress to plan the deployment and design its interface.
In 2019, Arbitrum raised $3.7 million to explore smart contract scalability. It also launched the first Rollup system for Ethereum in early 2020. Arbitron claims to have achieved a reduction in gas costs of 55 times for its testnet port of Uniswap v2 in November last year, supporting 390 swaps per second compared to just seven on the Ethereum mainnet.
Adams said that the Uniswap team remains exuberant to launch a rival layer-two scaling solution, Optimism. Adams noted Uniswap is still aiming for deployment on Optimism soon.
Significant Layer-two Contender
Optimism, which acquired $25 million in a February funding round led by A16z, announced that its launch would be delayed in March. It offered July as a “rough estimate” for the mainnet launch.
The delay has allowed other second-layer scaling solutions to secure market share, with Polygon taking an early lead after Aave quickly attracted a 10-figure TVL on the network.
Arbitron has also emerged as a significant layer-two contender, with the project currently targeting May 28 for its mainnet launch. In the beginning, developers will have exclusive access to Arbitrum after launch, allowing the network’s initial cohort of projects to establish infrastructure and conduct testing.