Uniswap to be Deployed on Polkadot
It has been announced that decentralized exchange Uniswap (UNI) will be deployed on the popular altcoin project Polkadot (DOT). With this deployment, it is aimed to increase the liquidity and volume of the Polkadot ecosystem.
Uniswap’s decision to deploy on Polkadot follows an almost 100 percent unanimous governance vote, first advocated by a student education group affiliated with UC Berkeley and implemented by another education organization, the Blockchain community in Michigan. . In the first attempt, Uniswap’s smart contracts were tried to be deployed using the Nomad bridge service, but this last attempt will use the Wormhole bridge.
The world’s largest decentralized exchange (DEX) with its daily trading volume will present its V3 update to Polkadot users in about a month, which offers several advantages over previous versions such as better fund efficiency, more flexible fee structure and improved user experience. Uniswap V3 on Polkadot will be available with Moonbeam, a parachain running on top of the network. Commenting on the deployment of Uniswap on Polkadot, a Uniswap spokesperson said:
Since UNI is a blue chip and has always been at the forefront of DeFi innovation, we have always intended it to be deployed at Polkadot in one form or another.
The spokesperson added that it was Moonbeam that took the initiative in 2022 to approach Polkadot and allow them to run the Uniswap V3 smart contract on the parachain.
Moonbeam was chosen because it has Polkadot’s highest DeFi efficiency, is the most EVM-friendly in the parachain architecture ecosystem, and offers Ethereum virtual machine deployment as smooth and frictionless as any other EVM chain on the market. A parachain aims to increase scalability by ensuring that every transaction does not compete against every other smart contract on the network. This makes Polkadot an example of what is called a multi-chain or sometimes layer zero protocol that provides the backbone or infrastructure for different parachains.
According to CCData’s Q2 report, monthly volumes of decentralized exchanges increased by 27.6 percent compared to last year. The report includes the following note:
Uniswap V3 took the lead in terms of trading volume, capturing an average monthly market share of 50.3% of the volume of its decentralized exchanges.
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