By
Chimamanda U. Martha
May 13th, 2024
By integrating the two technologies, it is expected that a platform for DeFi applications – which will compete with the usual web user’s experience – would have been created.
Two years after launching the Unipig Proof of Concept, Uniswap has announced it is close to launching the Uniswap v3 on Optimistic Ethereum (OΞ).
By integrating the two technologies, it is expected that a platform for DeFi applications – which will compete with the usual web user’s experience – would have been created.
According to the blog post by the Uniswap team, the integration will begin with an Alpha launch of the Uniswap v3 on the layer 2 solution. During the alpha launch period, the expected speed of transactions is put at 0.6 transactions per second. This is equivalent to what is currently obtainable on L1, but with no delay in transactions. It is estimated this will help save up to 10X of the transaction costs.
The plans to integrate with Optimism’s rollup was first announced to the public in March when the Uniswap v3 was launched. Optimism, backed by Andreessen Horowitz, is only one of a few startups looking to scale the Ethereum blockchain ecosystem by creating layer 2 solutions.
This is particularly important for an exchange like Uniswap that conducts its transactions on the Ethereum blockchain. Data from ETH Gas suggests that Uniswap spent 1.500 ETH on transactions in the last month making them the largest consumer of gas.
Plans of Uniswap for Optimistic Ethereum
Optimism’s strategic plan includes further scaling efforts, smart wallet EOAs and complete decentralization of sequencing operations in transactions. This, it is expected, will further increase transaction speeds leading to lowered costs and higher decentralized exchange trading.
While users can begin migrating to the OΞ network through the Optimism Gateway, Uniswap warns that the technology should be treated as a product that is still in its early stage.
“Optimistic Ethereum is a complex Layer 2 scaling solution still in need of rigorous battle testing. At launch, the Optimism team will have upgrade rights over the bridge contract, allowing them to address any bugs that should arise, ” the team said.
Other features of the Alpha launch include downtimes in the early days of the launch, 7 days withdrawal to L1, limited support for assets (ETH, USDT, WBTC, DAI, SNX), TWAP oracles and full composability (but without arbitrary smart contract deployments yet). All of this would be improved on as the days go by.
Optimistic roll-ups will complement ETH 2.0 when it is finally launched. Together, they will push DeFi into public view and aid its adoption by more people.