• Uniswap v3 was approved by a temperature-checking vote over Binance BNB Chain, despite objections to its centralization.
• This will be the first time Uniswap is deployed on a platform with higher degree of centralization.
• The vote garnered the greatest number of participating wallets in Uniswap Governance History.
Uniswap, the decentralized exchange system (DEX) has recently taken a major step forward in its development – opting for a launch on Binance BNB Chain. Despite some objections raised against the platform’s higher degree of centralization, the proposal received an overwhelming majority in a temperature-checking vote, garnering more than 80% in favor of the deployment of Uniswap v3 over BNB Chain.
This vote was a milestone in Uniswap’s Governance History, as it achieved the highest number of participating wallets with 99% of the 24.9 million votes coming from only 0.1% of the wallets. Uniswap v3 is the first major update for the platform since it was launched in April 2021. The code for the protocol is still being developed under a two-business license and will be released as open source upon expiration.
Uniswap v3 also marks a shift in the platform’s focus, as it currently only runs on five blockchains – Ethereum, Polygon, Arbitrum, Optimism, and Celo – with 90% of its entire value locked on Ethereum (TVL). This is in stark contrast to other popular DEXs such as Curve and Sushi, which have deployed their protocols on up to 12 and 23 blockchains respectively.
The launch of Uniswap v3 on Binance BNB Chain could challenge the dominance of Pancake Swap, the top exchange on the BNB Chain, which is a fork of Uniswap’s more straightforward v2. Pancake Swap has a total value locked of $2.45 billion, which is more than double Uniswap’s current TVL.
Plasma Finance, the promoter of the proposal, believes that the shift to Binance BNB Chain will bring numerous benefits to Uniswap. It will enable Uniswap to tap into a larger user base and offer better liquidity as well as faster transaction speeds. Additionally, the BNB Chain is also known for its low transaction fees and security, which will be beneficial for Uniswap users.
Uniswap’s move to Binance BNB Chain is an exciting development for the DEX and the wider crypto industry. It signals the platform’s commitment to expanding its reach and providing users with enhanced features and services. It will be interesting to see how Uniswap performs on the BNB Chain, and whether it will be able to challenge the dominance of Pancake Swap.