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Optimistic Ethereum Layer Two Scaling Solution Now on UniSwap

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.

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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.

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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

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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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Shelly Melancon (Switzerland)

Shelly is a cryptocurrency enthusiast from Switzerland, she bought her first crypto in 2015 when it was way less popular then it is today and since 2017 she has been writing about cryptocurrency for online news portals. Shelly is the newest addition to the Tokenhell team, she writes mostly news and reviews related articles , stay tuned to her posts to stay up to date with the crypto world.

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