Decentralized Powerhouse Uniswap Leverage Moonbeam Parachain to Launch on Polkadot
The leading decentralized exchange Uniswap is set to utilize Moonbeam parachain to deploy on the Polkadot. The DeFi platform revealed in its today’s statement that it is launching on the Polkadot-based network.
Blockchain Initiative Greenlights Uniswap Launch on Polkadot
The decision by Uniswap to establish a shop on the Polkadot arises from the nearly unanimous governance vote executed in Michigan via the Blockchain initiative. The educational entity is fulfilling the intermediation role between Uniswap and Polkadot in its renewed focus on establishing new blockchain industry leaders.
The leading decentralized exchange (DEX) plans to establish version 3 (V3) by June. The DEX targets deploying the V3 iteration on the Polkadot network. Today’s Uniswap statement revealed that the DEX targets improved capital efficiency, superior user experience, and flexible fee structures.
Uniswap admitted that its V3 has considered the Polkadot through the Moonbeam. The May 18 update revealed that Moonbeam operates as a parachain, thus exercising blockchain sovereignty to an extent though running on the network.
Uniswap Transaction Volume Matches Coinbase
News of Uniswap establishing Polkadot operations triggered increased DEX platform activity. In particular, its transaction volume triumphed over Coinbase figures. The uptrend is linked to increased Pepecoin (PEPE) volume.
The craze radiated by Pepecoin propelled the Uniswap daily volume above Coinbase, coinciding with a higher market cap for PEPE above $1 billion. A review of Uniswap’s performance reveals that it pulled level with Coinbase on May 4 by realizing a $1.2 billion daily volume outlined by CoinGecko and DeFi Llama data.
The emergence of Uniswap as a worthy rival of Coinbase is not accidental. Instead, Uniswap operates as a protocol with threefold versions hosted across six distinct blockchains. The DEX versions – v1, v2, and v3 – operate across Ethereum, Arbitrum, and Optimism, amongst others.
The Uniswap executive revealed that UNI constitutes a blue chip protocol ranked as leading the DeFi innovation. The DEX official reiterated that Uniswap has always considered deploying on the Polkadot.
Uniswap Explores Options to Expand Volume and Scale
The executive revealed that Moonbeam leveraged the opportunity to contact Polkadot last year on the viability of its running smart contracts reached using the Uniswap Version 3 (V3) on the parachain. Polkadot would ultimately accept the offer.
Polkadot executives revealed the acceptance was granted, considering that Moonbeam runs the highest DeFi activity on the Polkadot. Additionally, the parachain architecture offers the ideal EVM-friendly within the Polkadot ecosystem. Consequently, Moonbeam had the potential to sustain the frictionless deployment of Ethereum. Besides, it would guarantee smooth virtual deployment of Ethereum, just as other EVM chains.
The involvement of parachains is critical in any contract. The Moonbeam executive indicated that their participation reinforces the scalability to guarantee that no transaction competes against the rest of the smart contracts.
Uniswap Benefits as DEXs Gain Popularity
Uniswap has in the past identified Polkadot as a multichain. The reference implies that Polkadot constitutes a layer zero protocol that offers a supportive infrastructure for various parachains.
Uniswap launching on the Polkadot serves as a serious warning to the centralized exchanges (CEX), whose existence is considered doubtful, given the sudden implosion of FTX in November 2022. The move signals continued preparation by Uniswap for increased activity in the future.
A quick outlook on the crypto industry shows decentralized exchanges’ increased popularity as most crypto holders consider them safer than centralized platforms. Uniswap is set to benefit in the demise of centralized rivals Binance and Coinbase as crypto investors avoid the recurrence of the FTX scenario.
DEXs subject customers to complicated processes, thus eroding their user-friendliness. Nonetheless, DEXs allow the users to exercise control rights over their holding, unlike the CEXs.
Detailed scrutiny of DEX activity shows monthly volumes growth averaged 27.6% compared to 2022 performance per CCData quarterly reporting. As the dominant DEX, Uniswap V3 commanded the lion’s share of the trading volume at 50.3% of all the activity executed within the decentralized platforms. The numbers would increase, given that Uniswap is launching on the Polkadot.
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