DEX giant Uniswap V3 has made an exciting announcement that it has expanded its services to the Binance Smart Chain (BNB). This marks a significant milestone for Uniswap, which has been primarily deployed on Ethereum, with Layer 2 solutions like Arbitrum, Polygon (MATIC), and Celo (CELO).
The Binance Smart Chain is a public blockchain operated by Binance, and it has a total value locked (TVL) of around $5 billion, making it the second-largest market after Ethereum. This move by Uniswap is expected to significantly expand its user base, as Binance Smart Chain’s top decentralized exchange, PancakeSwap, has approximately 120,000 unique wallets, compared to Uniswap’s 53,000 wallets.
1/ Uniswap is now live on @BNBCHAIN🔶🦄
Start swapping your fave BNB tokens on the Uniswap web app today! https://t.co/JTiOmVWZl9 pic.twitter.com/pseoJ2qIku
— Uniswap Labs 🦄 (@Uniswap) March 15, 2023
Uniswap is the largest decentralized exchange, with a TVL of $3.5 billion, and according to the data site CoinMarketCap, it has a daily trading volume of $2.3 billion, almost double that of the second-place derivatives exchange, Dydx.
Uniswap’s expansion to the Binance Smart Chain is a significant development, as Binance typically offers faster and cheaper transactions than Ethereum’s mainnet, making Uniswap accessible to a wider audience. Uniswap V3 has several useful features, including flexible fee settings and “Concentrated Liquidity positions” that specify the price range of liquidity provision (LP) powered by a mechanism to generate (mint) NFT tokens that reflect LP positions.
However, the Uniswap V3 program code was released as open source, and to protect against “Vampire Attacks” by other projects such as SushiSwap, the “Business Source License” (BSL) was established with a two-year limit, requiring additional licenses for commercial use.
With the BSL license set to expire on April 1, 2021, many expect Uniswap V3 copy products to proliferate. As a result, the Uniswap community has planned to develop the official Uniswap multi-chain and has allocated resources to advance into the Binance Smart Chain.
The proposal to deploy Uniswap V3 on the Binance Smart Chain passed with 66% of the votes in favor (55 million UNI) in a community vote completed on February 10th. A16z (Andreessen Horowitz), a major Silicon Valley venture capital that holds a large amount of UNI tokens, also attracted attention by using 15 million UNI to vote against the proposal.
In conclusion, Uniswap’s expansion to the Binance Smart Chain is a significant development for the decentralized exchange giant. With the Binance Smart Chain offering faster and cheaper transactions than Ethereum’s mainnet, Uniswap is now accessible to a wider audience, and the move is expected to significantly expand its user base. It remains to be seen how this expansion will impact the decentralized exchange market, but Uniswap’s dominance is expected to continue.
Read more:
- Uniswap Community Voted In Favor Of Deploying Uniswap V3 On Boba Network’s Layer-2 Protocol On Ethereum
- Uniswap V3 Launch Imminent As License For Current Version Nears Expiry On April 1st
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