Is Uniswap expanding to the BNB Chain?
In a vote on the future of Uniswap v3 protocol, 20 million participants voted for an expansion to the BNB chain.
In a vote on the future of Uniswap's v3 protocol, 20 million participants voted in favor of expanding to the BNB chain.
On Sunday evening January 22, a poll within the Uniswap community concluded. The goal of the poll was to gauge willingness for a potential expansion of the decentralized exchange's v3 protocol to the BNB chain. UNI-protocol OxPlasma Labs brought the proposal forward with a vote, with about 20 million participants, over 80 percent, voting in favor of the expansion. "Our proposal to deploy Uniswap v3 on the BNB chain has passed the 'temperature check' with 20 million votes for and 6,495 UNI votes (the largest total in the entire Uniswap governance history)," Plasma said.
Plenty of reasons for an expansion
The reasons for the expansion are substantial, according to the minutes. One of them is the large and growing number of users, which could open a new market. The high transaction speeds and low costs would also make the BNB chain a suitable platform for Uniswap's DEX services, the company said. "Pursuing the BNB chain could help Uniswap capitalize on the growing popularity of DeFi in the Binance ecosystem," according to the developers. Furthermore: "BNB Chain offers unique features like staking and cross-chain support that could enhance Uniswap v3's functionality." An upgrade to BNB Chain would mean at least $1 billion in additional liquidity to the BNB ecosystem, as well as "one to two million new users," according to Plasma.
Currently, the Uniswap v3 protocol is available on Polygon, Optimism, Arbitrum, and Celo blockchains. Whether and when the potential expansion will be completed remains to be seen. Uniswap continues to push for mainstream adoption in the meantime. Since December, it has been possible to buy crypto on DEX with a credit card or bank transfer.
