Decentralized finance platform Uniswap is set to launch on the Polkadot network, marking a step forward in expanding its accessibility.
The move has been influenced by a governance vote, initiated by Blockchain at Michigan. This educational entity is committed to nurturing the future of blockchain technology.
The deployment, involving Uniswap’s V3 version, is scheduled to occur in the coming month. It is claimed that this version will provide improvements, such as capital efficiency, flexible fee structures, and a superior user experience.
Moonbeam, a parachain operating within the Polkadot network, has been instrumental in making the Uniswap V3 integration possible.
A Uniswap spokesperson has revealed that the move to Polkadot was always a strategic aim due to the platform’s prominence in the DeFi sector. Interestingly, Moonbeam approached Polkadot in 2022 with the proposal to run Uniswap V3 smart contracts on the parachain.
Parachains, integral to Polkadot’s multichain or “layer zero” protocol, aim to boost scalability. They achieve this by preventing transactions from competing against all other smart contracts within the network.
The shift towards decentralized exchanges, such as Uniswap, has been gaining momentum, particularly after the collapse of the centralized exchange FTX last year.
Decentralized exchanges operate differently from their centralized counterparts, such as Binance or Coinbase, as they don’t involve banks. This requires users to hold digital assets for transactions, which can be more complex but offers customers more control over their assets.
A recent Q2 report from CCData indicated a 27.6% increase in monthly volumes for decentralized exchanges compared to last year. Uniswap V3 is reportedly leading this trend, capturing an average monthly market share of 50.3% of the total decentralized exchange volume.