By Shelly Melancon (Switzerland)
UniSwap, foremost decentralized exchange on Ethereum network, gets a new scaling solution which will see the DeFi protocol experience faster transactions at a low cost. The new scaling solution is known as the Optimistic Ethereum into which the UniSwap version 3 will be integrated. However, Uniswap announced that it was not fully integrated, instead it was just an alpha integration as it is still being tested.
On Tuesday, Uniswap announced the development while expressing delight about1 the transition. The Ethereum-based DEX stressed that the transition was still at the demo phase which would enable devs to enhance the integration slowly while being able to also address any problem that users may encounter while using the DEX. It also told users there could be a system downtime and withdrawals from the Optimistic Ethereum main network to DEX’s layer one will take up to a week.
Few Assets Available on Improved v3, More Crypto Assets to be Added
According to Uniswap, the layer two solution currently has only a few assets on it such as Ethereum (ETH), Tether (USDT) stablecoin, Wrapped Bitcoin (WBTC), Synthetix ($SNX). As the integration nears full launch, more assets will be deployed. Before the final integration, Uniswap claimed that during the alpha period, 0.6 transactions will be completed per second, being the initial speed pending full deployment. While the proposed speed may be equal to that recorded on Uniswap’s layer one, on Optimistic Ethereum, transactions will no longer be pending or be stuck.
Also read:If both layer one and the OE main network- as the DEX is now on it- are the same in terms of transactions, Uniswap claims that the layer two solutions will reduce transaction costs by 10 times. According to the leading decentralized exchange, the fees could add up whenever there is high activity on the network. In the days leading up to a full integration, the speed of transactions would increase.
Uniswap DEX has really established itself as the world’s most popular decentralized exchanges by creation and daily trading volume. It is one of the first decentralized exchanges to be built on the Ethereum network. Uniswap switched in May from version two to version 3 with improvements and more functionalities.
Hayden Adams Highlights Benefits of Layer Two Scaling Solution
Uniswap’s founder, Hayden Adams made comments on the layer two scaling solution. According to him, the Optimistic Ethereum solution is a step in the right direction as the DeFi space enjoys more patronage from retail and institutional investors.
‘It’s happening
Instant transactions and a steady increase in scaling w/ the end goal of fully meeting demand for low cost, high speed DEX trading
All built on Ethereum and preserving decentralization.”
Hayden Adams (@haydenzadams) July 13, 2021
Uniswap likened the new solution to Ethereum 2.0, stating both solutions will encourage more people to embrace decentralized finance. The Optimistic Ethereum confirms transactions while assuming they are accurate. So it erodes the zero-knowledge principle. Synthetix is also looking at deploying the same solution on its protocol later this month.
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