- Uniswap deploys on Polygon, an Ethereum-focused scaling platform.
- Polygon co-founder Mihailo Bjelic proposed deploying Uniswap v3 on Polygon on the Uniswap governance portal last month. Last Thursday, the Uniswap group voted to support the possibility.
The Layer 2 network Polygon has been used to install Uniswap, one of Ethereum’s largest decentralized exchanges.
All Uniswap version 3 contracts have now been deployed to the Polygon mainnet, according to Uniswap and Ethereum scaling system Polygon.
The rollout came days after UNI holders approved a governance proposal authorizing it. The price of MATIC and Uniswap’s UNI token increased in response to the news, with MATIC, the Polygon network’s native asset, reaching a new all-time high of $2.66 earlier today.
Polygon’s founder Mihailo Bjelic recently stated that his company has the “second strongest DeFi ecosystem” after Ethereum.
“Polygon has been exponentially growing by pretty much all important metrics,” he said, noting that the platform now has 126 million users, 1.22 billion transactions, and $5.2 billion in locked value.
On the Uniswap governance portal, Mihailo Bjelic proposed deploying Uniswap v3 on Polygon. Last Thursday, the Uniswap group opted to accept the idea.
Polygon is “aligned with Ethereum and its values” and “battle-tested,” according to Bjelic’s original Uniswap proposal. As a result, the polygon can help “return to the original DeFi vision,” he said, citing potential savings for customers as one of the benefits.
Uniswap may offer incentives to encourage adoption, according to Bjelic, and contribute up to $20 million to that goal. This includes $15 million set aside expressly for liquidity mining incentives.
On Dec. 18, 99.3 percent of Uniswap members voted to approve the proposal. The proposal received 72 million votes in favor, with around 500,000 votes against it.
Uniswap has already been installed on two companions, or layer two platforms, Arbitrum, and Optimism, as the largest DEX in terms of trade volume. Uniswap on Arbitrum has a value of $62.19 million, according to Defi Llama, while the Optimism version has a value of $36.94 million.
Both figures are insignificant compared to the $8.75 billion total value locked (TVL) on the Ethereum mainnet version of Uniswap.
Uniswap’s TVL, on the other hand, trails Curve’s $22.23 billion, which makes it the largest decentralized finance (DeFi) protocol by that criterion. Avalanche, Harmony, and Polygon are just a few of the blockchains and layer two systems that Curve supports right now.
Uniswap deposits are dominated by Ethereum, which accounts for $4.3 billion in locked value. Other Layer 2 networks on which Uniswap has been installed have generated even less money, with Arbitrum and Optimism bringing in only $62.3 million and $36.9 million in locked funds, respectively.
DeFi is still dominated by experienced crypto traders and investors, according to a report released earlier this year by blockchain data firm Chainalysis, partially due to the Ethereum network’s high transaction costs. The Ethereum congestion problem has assisted scaling projects like Polygon.
Uniswap’s Polygon version has only gotten a fraction of that, with $2.9 million already committed. However, this sum appears to rise in the following days and weeks.