Uniswap is a fully decentralized DEX that uses smart contracts to process peer-to-peer trading between any two users on the planet. Users deposit their funds via any two ERC20 tokens on the protocol—receiving a portion of trading fees each time trade on that pair is executed.
The platform’s own UNI token allows users to propose improvements or changes on Uniswap forums, with higher holdings meaning more voting power and vice-versa.
Everyone wants Arbitrum
As per a snapshot page, over 41 million UNI (the native token of Uniswap) have voted ‘FOR’ Arbitrum support on the ‘v3’ version of Uniswap. Just 205 UNI, on the other hand, voted for ‘NO’ support. This means nearly 100% of all UNI voters want Arbitrum on the DEX.
The poll was deployed by Compound founder Robert Leshner and runs for two days. “I support deploying Uniswap v3 to Arbitrum and love the community’s zeal, ” he said in a tweet yesterday.
I have created a Snapshot poll to guage interest in deploying Uniswap v3 to Arbitrum
Voting lasts for 2 days:https://t.co/jZQTiEsms4
— Leshner (@rleshner) May 26, 2021
Leshner’s poll linked to a proposal made by community member ‘andy8052.’ “Not deploying to new and growing networks like Arbitrum and Matic just allows for other exchanges to come in and fill that spot. This could potentially eat into fees earned by governance in the future,” reads a part of that proposal.
“Alongside this, it will help to grow the potential list of projects that can be built on Uniswap v3…[and] expedite Uniswap adoption on all chains as the code and integrations become more battle tested,” it adds.
Why the need for L2 on Uniswap?
The Ethereum network is currently the world’s most used blockchain but suffers from a long-running problem: Sky-high fees which render the platform unusable for smaller users (alongside the slow transaction speeds).
Users were paying as much as $200 earlier this month to process single trades on Uniswap—courtesy of the network congestion on Ethereum—a development that incited criticism from several crypto quarters.
— Lark Davis (@TheCryptoLark) May 12, 2021
But Arbitrum can help change that. The protocol, as per its GitHub page, makes smart contracts scalable, faster, and more private and allows Ethereum developers to easily cross-compile their contracts to run on the protocol.
Its launch is scheduled for Friday, May 28, and is a ‘rollup’ product of Offchain Labs, allowing developers to scale their application by handling transactions off the Ethereum mainnet (layer 1) while not compromising on the latter’s decentralized security model.
Arbitrum on Ethereum could make trading much more scalable and cheaper for users (‘GAS’ fees are 270 times lower via Arbitrum), and help make Uniswap much more usable for everyone (and not just ‘whales’).
Meanwhile, Uniswap creator Hayden Adams said the team would be keen to support Arbitrum if the proposal successfully passes. “Assuming the snapshot passes we intend to support the community by deploying the v3 smart contracts to Arbitrum,” he said, adding, “We have already begun work on interface support and planning the deployment.”
Assuming the snapshot passes we intend to support the community by deploying the v3 smart contracts to Arbitrum!
We have already begun work on interface support and planning the deployment.
— Hayden Adams (@haydenzadams) May 26, 2021
And, with the community votes in, Uniswapping is set to soon becoming cheaper for all.
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