Uniswap Governance Votes for Arbitrum L2 Scaling Deployment

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In Brief
  • Layer 2 scaling coming soon to Uniswap.

  • Arbitrum uses optimistic rollups.

  • UNI price spikes to $29 before pulling back.

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An ongoing vote by Uniswap’s governance community is strongly in favor of deploying v3 on Arbitrum’s Layer 2 scaling mainnet.

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In a governance proposal posted on May 26, the protocol recommended deploying version 3 to Arbitrum to usher in the beginnings of full Layer 2 scaling for the world’s most popular decentralized exchange.

The proposer [andy8052] noted that not deploying to new and growing networks like Arbitrum and Polygon (Matic) just allows for other exchanges to come in and fill that spot.

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Layer 2 coming to Uniswap

The proposal has garnered an overwhelming majority in favor with over 40 million UNI being allocated to approval votes and none voting against it at the time of press according to founder Hayden Adams. It was noted that this is 1.35 million more than the required threshold to actually pass a live proposal.

Adams continued to state that, assuming the snapshot passes, Uniswap Labs intends to support the community by deploying the v3 smart contracts to Arbitrum. The team has already begun to work on interface support and planning the deployment.

He added that Uniswap is ready for Optimism Ethereum scaling and is continuing to work with teams to reach a deployment “in the near future.” Extolling the benefits of L2 scaling, Adams said:

“Layer 2 solutions will unlock enormous UX benefits, with fast finality and low tx fees. However, we caution the community to take things slowly: this is experimental technology that requires serious battle testing before it can support economic activity at the scale of L1.”

Uniswap v3 took some flak shortly after launch for its lack of scaling and gas saving solutions.

What is Arbitrum?

Arbitrum is scheduled to launch on May 28 as an alternative implementation of rollup Layer 2 scaling with different design principles. It offers a suite of Ethereum scaling solutions that enables high-throughput, low-cost smart contracts while remaining trustlessly secure.

Arbitrum uses optimistic rollups, which attempt to remove the need for zero-knowledge proofs by changing the consensus principle. Instead of verifying each transaction, the network assumes that all are correct, making users intervene only if they see an incorrect transaction by submitting a “fraud proof.”

The Arbitrum Rollup chain is built on top of and secured by the Ethereum blockchain, and all transaction data is logged on Ethereum. This enables developers to not only deploy their smart contracts directly onto Arbitrum without requiring any custom tooling or contract rewrites, but also retain the entire familiar infrastructure available as well.

Uniswap’s native token UNI, spiked to $29 in reaction to the proposal but has since retreated to $26.46 trading flat on the day.  

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Martin has been covering the latest developments on cyber security and infotech for two decades. He has previous trading experience and has been actively covering the blockchain and crypto industry since 2017.

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