Uniswap has announced that all three Uniswap Version 3 contracts are now live on Polygon after UNI token holders voted overwhelmingly in favor of a governance proposal that approved the deployment.
The Uniswap Proposal
Polygon co-founder Mihailo Bjelic had submitted a proposal on the Uniswap governance portal to deploy Uniswap on Polygon, which the Uniswap community voted overwhelmingly in favor of, with over 72 million UNI token holders supporting the move. This means that users on Uniswap can use the Polygon blockchain to swap tokens.
Speaking on Telegram about the deployment, the Polygon co-founder Mihailo Bjelic stated,
“Ethereum introduced a noble vision of an open, borderless economic system accessible to everyone. With the increased usage, fees on Ethereum layer 1 have effectively ‘priced out’ most of the users. “With this deployment, Uniswap as the flagship Ethereum application returns back to the original vision and again offers low fees and open access to everyone.”
Bringing Transaction Fees Down
Polygon has been at the forefront of attempting to bring down transaction fees, being able to connect to an array of blockchains. Polygon offers significantly more interoperability, and more importantly, scaling by processing Ethereum transactions through various sidechains. Through sidechains, Polygon is able to significantly lower transaction costs, a factor that is seen as a significant boost for the users of Uniswap.
According to Bjelic, Uniswap’s deployment on Polygon will be a huge success, given the network already has a thriving DeFi ecosystem. The protocol has also announced several initiatives and announcements in recent weeks, such as its acquisition of Mir Protocol and its partnership with 776 VC to launch a $200 million initiative aimed at building social media on Web3.
Still Lagging Behind Curve
Uniswap is the largest DEX by trading volume and is already deployed on Arbitrum and Optimism. Uniswap on Arbitrum has around $62.19 million in total value locked and around $36.94 million locked on Optimism. These numbers pale in comparison to the total value locked on the Ethereum version of Uniswap, which totals a mind-boggling $8.75 billion.
However, Uniswap’s total locked value is still smaller than Curve’s locked value of $22.23 billion. Curve currently supports several blockchains and layer-2 solutions such as Harmony, Avalanche, and Polygon.
Good News For Matic Holders
Uniswap’s deployment on Polygon has also seen the value of MATIC, Polygon’s native token, reach record highs. The token’s value has appreciated significantly over the past week, registering an increase of 35% and setting a record high of $2.66.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.