Uniswap Takes the Leap Into the Multichain Realm

A change in Uniswap’s commercial usage provisions may be the cause of an increase in Blockchain implementation proposals on the DEX.

Uniswap is a decentralized exchange (DEX) based on the Ethereum blockchain. Users can trade cryptocurrencies without relying on a centralized middleman like a conventional exchange.

Uniswap is seeking to deploy everywhere as the DEX seeks to increase its already sizable market share. The DEX’s most recent action to support that endeavor was to deploy on a variety of blockchains that are Web3-oriented via Uniswap v3.

According to Getty Hill, the co-founder of the delegation, GFX labs, the sudden increase in bids for blockchain development is most likely due to the business source license (BSL) of Uniswap v3 expiring in the next few months.

According to Hill, there were several opportunities to fork Uniswap’s v2 code and introduce copycat protocols on other chains when it originally appeared. Hill told Blockworks that, “they would just copy and paste the code, launch and slap their own token on it.”

One of the most current and well-known of these protocols under consideration is Binance’s well-known BNB chain. Given that 80% of UNI (Uniswap Stoken) holders voted in favor of the temperature check around the decision on Tuesday, participants in the decentralized ecosystem of Uniswap have been in support.

Since its May 2021 deployment in the Ethereum mainnet, Uniswap v3 has constantly held the top spot in its segment of the market. It focuses on concentrated liquidity.

Since then a rising variety of protocols new to its platform have been supported by the product including Arbitrum, Optimism (OP), Polygon (MATIC), and Celo.

According to Hill, the protocol probably decided to attach the BSL in an effort to avoid Uniswap’s earlier problems this time. In other words, the Uniswap community would need to approve any commercial usage of the source. He continued, “In April, the blinders come off and at that point, it would be free reign for anyone to deploy and use (the code) in any way they want.”

He further stated “Small chain, big chain, bad chain, good chain – we’re deploying everywhere, according to the plan that the foundation and myself arrived at since it’s much more difficult to fork the protocol if Uniswap v3 has already been deployed there.

For Uniswap, deploying on different chains has so far been successful. The protocol was able to take nearly 50% of the market within three months of availability on Polygon. Many of Uniswap’s current ideas, according to Erin Koen, head of asset management at Avantgarde Finance are expected to benefit both the chain selected for Uniswap deployment and the DEX itself.

Koen used the case of BNB to illustrate the need for Uniswap to record trade volume on those chains, particularly as the DEX prepares to activate its fee switch in the future. The Enzyme protocol, a blockchain infrastructure that enables non-custodial, third-party management of pooled assets is maintained by Avantgarde Finance, another Uniswap delegate.

Therefore, it can be concluded that Uniswap is putting itself in a position to be a significant player in the multichain ecosystem based on recent actions.