After strong community backing and votes, the Uniswap v3 smart contracts have finally gone live on the Ethereum Layer-2 scalability platform Polygon.
In a major development on Wednesday, December 22, decentralized exchange protocol Uniswap announced the deployment of its version 3 contracts on the Polygon blockchain network.
The approval comes after Uniswap initiated an on-chain vote. More than 72 million Uniswap (UNI) token holders supported the move while accepting the proposal last week. As a result, Uniswap has decided to deploy the Uniswap v3 contracts based on the votes that showed 99.3% consensus approval.
The recent deployment will help in alleviating the issue of high-gas fees as faced by Uniswap users on Ethereum. The heavy deployment of DeFi and DEXs on Ethereum has resulted in network congestion. As a result, the gas fee has shot up significantly over the last year.
Thus, choosing Polygon, the Layer 2 Ethereum solution, will help Uniswap overcome some of these concerns. Speaking of this development, Polygon co-founder Mihailo Bjelic said:
“With this deployment, Uniswap as the flagship Ethereum project returns back to the original promise and again offers low fees and open access to everyone. Polygon’s DeFi ecosystem is the second strongest one in the industry, right after Ethereum L1. Uniswap will be a major addition to this flourishing ecosystem, given that it is an important and often used building block (aka money lego) in many modular DeFi implementations.”
Uniswap Governance and Community
Decentralized exchange (DEX) protocol Uniswap has been governed by the holders of its native UNI tokens. These are predominantly the users of Uniswap DEX.
Apart from gas sees, one of the biggest advantages of Polygon is that it caters to a “multi-chain system”. Besides, it also promotes scalability for Ethereum by routing transactions through sidechains. Thus, the deployment of Uniswap v3 is also a good news for MATIC holders.
With this, Polygon’s native token MATIC will be useful to place votes on governance issues along with paying the transaction fee. Soon after yesterday’s news, both MATIC and UNI price skyrocketed.
The MATIC price touched an all-time high of $2.65 extending its weekly gains to more than 20%. Polygon’s MATIC has been one of the top-performing digital assets even during last week’s crypto market correction. Furthermore, the Uniswap (UNI) price has gained 10% and is currently trading at $16.77. UNI was one of the top performers during the DeFi wave of 2020.
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
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