Uniswap v3 Proposed for Deployment on Coinbase’s Base Layer 2 Network

By 0xK2 05/18/23 12:47 AM

Three Uniswap governance members have put forth a proposal to deploy Uniswap v3 on Coinbase’s layer 2 network called Base. The proposal, submitted by she256, Michigan Blockchain, and GFX Labs, aims to leverage Base’s open-source and developer-friendly environment to enhance the Uniswap ecosystem and attract a new wave of users.

Base, incubated within Coinbase, is an L2 EVM blockchain built on the MIT-licensed OP Stack. Its mainnet launch is scheduled for summer 2023, with a testnet already live. The collaboration between Coinbase and Optimism has paved the way for Base to become an integral part of the Optimism superchain vision.

The proposal highlights several key stakeholders, including the proposers (she256, Michigan Blockchain, and GFX Labs), the deployer (GFX Labs), the bridge provider (Bedrock – Optimism native bridge), and the target chain (Base – Optimism Rollup). Additionally, she256, as the proposal sponsor, possesses more than 2.5 million UNI and is eligible to administer the onchain vote.

The motivation behind the proposal lies in Base’s potential to generate high Total Value Locked (TVL) and attract new users to Uniswap. Base plans to integrate natively with Coinbase products, which boast tens of millions of users. Moreover, more than 50 dapps and protocols have committed to deploying on Base, making it an attractive ecosystem for Uniswap to tap into. The positive signal from initial usage of the Base testnet further bolsters the potential of this collaboration.

Dapps and protocols have committed to deploying on Base

Uniswap v3 deployment on Base aligns with the vision of the Optimism superchain, which seeks to integrate siloed Layer 2 solutions into a unified and interoperable network. The OP Stack, leveraging a fraud-proof scheme, allows for efficient batched transactions on Ethereum L1. The development of a Superchain, a network of OP Chains sharing common features and governance, is underway, aiming to bring scalable and decentralized compute to the world.

Coinbase’s Base represents a significant development in this context, as it aims to provide a secure, low-cost, and developer-friendly environment for on-chain dapps. By offering day-one support for Uniswap, Base intends to become a home for Coinbase’s onchain products while welcoming contributions from developers worldwide.

The proposal emphasizes the benefits of deploying Uniswap v3 on Base, including increased TVL, enhanced security and scalability, developer empowerment and integration, improved efficiency and cost-effectiveness, and values alignment with the open-source ecosystem. The goal is to establish Uniswap as the primary decentralized exchange on Base from the moment of launch.

Developers have shown strong engagement with Base, as demonstrated by the deployment of numerous smart contracts on the testnet within the first week. Retention rates and activity metrics also suggest promising prospects for Base’s mainnet.

The deployment process involves an RFC phase, followed by a temperature check to gauge the community’s interest, and an onchain vote after Base mainnet goes live and the contracts are deployed.

In summary, the proposal to deploy Uniswap v3 on Coinbase’s Base layer 2 network represents an opportunity to unlock new synergies within the DeFi ecosystem, attract more users to Uniswap, and contribute to the vision of an interoperable and scalable Superchain powered by Optimism.