Premier decentralized exchange platform Uniswap is set to launch on Polkadot's Moonbeam parachain, with the integrations tabled through its decentralized governance platform.
Uniswap's plans for a more diversified offering have gained traction with its proposed launch on Moonbeam, Polkadot's parachain. This move, unanimously approved on Uniswap's governance forum, is set to thrust the DEX into a promising decentralized environment that emulates Ethereum's functionality, fostering app portability. Smart contracts for the exchange are already on Moonbeam; only front-end integration and auto router updates are yet to to be implemented.
1/ @Uniswap - the most popular decentralized exchange by daily traded volume - is coming to Polkadot via the @MoonbeamNetwork parachain, increasing volume & liquidity across the ecosystem! pic.twitter.com/lKaceLv6ce
— Polkadot (@Polkadot) May 17, 2023Moonbeam, concentrating on a developer-friendly atmosphere similar to Ethereum, makes it seamless for developers to move their Ethereum applications over to the Polkadot network, an interconnected web of blockchains referred to as parachains. Polkadot's relay chain ensures that these parachains share security.
Uniswap's current emphasis is on managing initial liquidity issues for the new platform. The proposal cautions about temporary liquidity bootstrapping absences due to market instability. As a solution, contributors to the proposed implementation are considering applying for a Moonbeam grant to expedite liquidity provision, implying the funds, if approved, would be governed by Uniswap's decentralized autonomous organization (DAO).
Omar Elassar, business development executive at Polkadot developer Parity Technologies, echoed the positive sentiments in an accompanying announcement. Elassar claims that the new integration would enhance the speed and security for Uniswap users:
“Polkadot is a strong fit for Uniswap, whose users can discover everything the network’s parachains offer, such as high performance, scalability, security, and interoperability."
Polkadot is composed of intricate network of interconnected blockchain networks or "parachains", offers shared security through the Polkadot relay chain. The Moonbeam parachain, a component of this network, is strategically designed to emulate the Ethereum developer environment. This design seeks to simplify the process for developers looking to transition their Ethereum applications into the Polkadot ecosystem.
Uniswap remains as the world's largest decentralized exchange by trading volume, averaging at roughly $550 million in daily movement, according to CoinMarketCap data. Born within the Ethereum network, Uniswap has been consistently extending its reach into other networks. A testament to this drive includes the launch of a BNB Chain version and its a deployment to Polygon zkEVm. Uniswap also has an iOS app version, which was met with some restriction by Apple.
The news of this integration also coincides with a related proposal on Uniswap's governance forum, where contributors she256, Michigan Blockchain, and GFX Labs proposed a Uniswap V3 integration with Coinbase's Layer 2 blockchain infrastructure, Base.
This is still subject to an on-chain governance vote, but will eventually be considered if it receives enough approval. If approved, GFX Labs manage the contracts' technical implementation on Base, following the proposal's approval. Base's potential benefits are already drawing interest from key players like Uniswap's founder Hayden Adams, who has expressed anticipation for deploying the DEX on the network via the native canonical bridge, supervised by Base's core developers.
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.
