The Uniswap community has voted overwhelmingly to launch the third iteration of the DEX leader on Arbitrum, a Layer 2 solution to enhance its throughput and reduce gas fees further.
Creator of the DEX, Hayden Adams, announced on Twitter that the proposal’s governance vote accrued a whopping 41.35 million votes in favour and zero opposing votes from UNI token holders. Hayden went further to say:
“Assuming the snapshot passes, we intend to support the community by deploying the v3 smart contracts to Arbitrum! We have already begun work on interface support and planning the deployment.”
Uniswap v3 launched on May 5 and has gone ahead to record groundbreaking volume within just three weeks of launch. According to data from Uniswap.Info, the DEX generated $1.43 billion trading volume in the last 24 hours and has more than $1.5 billion current TVL at the time of writing. Messari Crypto had reported a $6.5 billion weekly trade volume achieved by the DEX unicorn, putting it on track to surpassing its second iteration weekly volume record at over $12 billion. Uniswap v3 launched with concentrated liquidity, capital efficiency, active liquidity, range orders, non-fungible liquidity, flexible fees, all as features without an L2 scaling solution implemented.
Arbitrum, on the other hand, had attracted praises from Vitalik Buterin for the progress they’ve made so far in scaling Ethereum as a second layer. The team raised $3.7 million in 2019 to operate in the Web3 space and to explore smart contract scalability. It launched the first Rollup system for Ethereum the following year.
In terms of operational capacity, Arbitrum claims that its solution achieved a reduction in gas costs to the scale of 55 times for its testnet port of Uniswap v2 in November 2020, after supporting 390 swaps per second compared to jusseven on the Ethereum mainnet.
The industry’s Layer 2 space is already heating up, with Polygon moving fast to steal the lion’s share of the market for L2 solutions. It has more than 300 solutions already onboarded, including DeFi super apps like Aave which saw more than $6 billion TVL on an L2.
Optimism which is one of the highly anticipated L2 solutions after raising $25 million in 2020 from top VC firms like a16z was also the first to be mentioned to be adopted by Uniswap. Adams reiterated its support for Optimism even though it is implementing Arbitrum, stating that Uniswap is still targeting a deployment on Optimism for “the near future.” Although it delayed its March launch date this year, it “hopes” to launch by early July.
Arbitrum team targets May 28 as the date for its Mainnet launch. It hopes to grant developers exclusive access after launch, allowing time for the network’s initial cohort of projects to establish infrastructure and conduct testing.