By
Temitope Olatunji
April 18th, 2024
The Uniswap ecosystem is expected to significantly benefit from Polkadot’s vast multi-chain capabilities and vice versa.
Uniswap, a leading decentralized exchange on several chains with a total value locked (TVL) of about $4.08 billion, is preparing to launch in the Polkadot (DOT) network via its Moonbeam parachain. According to the announcement by Michigan Blockchain, a proposal to deploy Uniswap V3 on Polkadot via Moonbeam Parachain was passed by a community vote with a 99.99 percent approval rate, amounting to 50.38 million votes against 1 vote. Notably, the Uniswap V3 proposal on Polkadot passed the temperature check with 26 million votes yes against 169 no votes.
The GFX Labs is responsible for the technical deployment of the proposal, while Warmhole is the selected cross-chain messaging solution acting as the bridge provider. The Michigan Blockchain acted as the sponsor for the Uniswap V3 proposal since it has more than 2.5 million UNI, thus making it eligible for administering the on-chain votes.
There are many benefits of having Uniswap V3 on the Polkadot ecosystem amid the mainstream adoption of blockchain technology. Furthermore, Polkadot enables multi-chain capabilities for DeFi ecosystems, thus improving the liquidity on the Uniswap network.
“For UNI being a blue chip and always being at the forefront of DeFi innovation, we always intended to have Uniswap deployed on Polkadot in some way, shape, or form,” a Uniswap spokesperson noted.
With Uniswap providing users with a platform to swap crypto tokens securely in a non-custodial way, the Polkadot network anticipates tapping on this quality to attract more DeFi developers.
2/ Uniswap provides users with a trustless, permissionless, and non-custodial way to access tokens. Its arrival in the Polkadot ecosystem adds visibility and momentum towards the development of a new world of decentralized financial products & services on Polkadot.
— Polkadot (@Polkadot) May 17, 2023
Uniswap and Polkadot Market Outlook
Following the announcement, Uniswap native token UNI gained about 4 percent on Thursday to trade at around $5.37, according to the latest crypto price oracle. Polkadot (DOT) price, on the other hand, added about 2 percent to trade around $5.42 during the early London market session on Thursday. Moreover, Uniswap V3 is expected to deploy on the Polkadot ecosystem in less than a month if all technicalities go according to plan.
The rise of DEXes was triggered by the collapse of FTX and the increased regulatory scrutiny for most CEX platforms.
As a result, the Uniswap ecosystem is expected to play a crucial role in cryptocurrency adoption in the coming years. Currently, Uniswap has a fully diluted market capitalization of about $5,355,197,114 and a reported 24-hour trading volume of around $62.2 million.
As the adoption of Ethereum smart contracts goes mainstream through institutional adoption, the Uniswap ecosystem is expected to grow exponentially as it is the largest DEX in the ecosystem. According to on-chain data provided by ethplorer, the UNI token has about 369k holders who have made around 4 million transfers.
Polkadot, on the other hand, takes pride in high staking amounting to about $4 billion DOT out of $7.6 billion DOT in market capitalization.