The Columbia University unit dedicated to distributed ledger technology has proposed deploying centralized exchange Uniswap on the Fantom blockchain.
This proposal aims to capitalize on the recent expiry of the Uniswap Business Source License. (BSL). This proposal is based on the partnership of Fantom and Axelar teams. It also focuses on the expansion of market reach across different ecosystems.
Axelar brings 30 connecting chains to offer cross-chain communication. It is a blockchain that connects blockchains. Also, it brings secure, decentralized interoperability to every connected chain.
Freedom to Developers to Uniswap v3 Protocol
The BSL enforced expiration on April 1. This gives freedom for developers to fork Uniswap v3 protocol. The BSL was implemented in 2021. According to it, there is a restriction on the commercial use of code.
The restriction is implied for two years. This gives authors the right to profit from their creations. But, the Protocol has transitioned to a General Public License.
Uniswap is amongst the most prominent decentralized cryptocurrency exchanges.
It is declared the largest based on trade volume. This decentralized exchange is based on Ethereum.
Extending Uniswap’s Functionality to Fantom Blockchain
The proposal’s supporters highlight various vital reasons for developing Uniswap’s functionality to the Fantom blockchain. They show the benefit of Fantom’s framework and consensus mechanism.
Also, Fantom gives low transaction cost, compatibility with Ethereum Virtual Machine (EVM), and risk mitigation. Fantom also provides interoperability with Ethereum. The EVM compatibility makes Fantom more convenient while putting dApps from different blockchains. Users can take advantage of the speed of Fantom to swap. The low fees will be another benefit.
Fantom is an open-source innovative contract platform for digital assets and dApps. By positioning Uniswap on Fantom, the benefits will be faster transactions, cheaper costs, increased reliability, and enhanced security.
On a brighter note, it is estimated that 30% of the current decentralized exchange volume on Fantom would be routed through Uniswap. Based on weekly data, Uniswap will capture an estimated $30-$40 million in volume per week. It can be said that through Uniswap on Fantom, the regulated products on the markets catered toward institutional investors. This will increase accessibility.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/05/26/defi-giant-uniswap-transitions-to-fantom-sayonara-to-ethereum/