Community Voted, Why Uniswap Will Be Deployed On Polygon
19 December 2021 - 09:00AM
NEWSBTC
Popular decentralized automated market maker (AMM) Uniswap will
deploy its smart contracts on Polygon, the Ethereum scaling
solution, Proof-of-Stake (PoS) chain. The announcement was made via
Twitter by the official handle of Uniswap Labs after the completion
of a community vote. Related Reading | Uniswap Community Reacts
Against The New Proposal, Here is Why The AMM will be rollout on
Polygon on its third iteration (V3), per the initial proposal. The
motion was passed with 72 million votes in favor and 503,009
against which suggest the proposal has wide acceptance within UNI
holders. đź—ł The Uniswap community has voted to deploy v3 on
@0xPolygon through the governance process. ⚡️ Uniswap Labs will
deploy Uniswap v3 contracts within a few days. đź‘€ Stay tuned.
pic.twitter.com/LwVLwEngPl — Uniswap Labs 🦄 (@Uniswap) December 18,
2021 Presented on November 19th by Mihailo Bjelic, one of Polygon’s
co-founders, claiming it’s “the right moment” to carry on this
community driven initiative. Bjelic claimed Polygon has one of the
“strongest DeFi ecosystem”, that the implementation could boost
Uniswap’s user base, and promised users that they will incentive
adoption to achieve that goal. We initiated the final phase of the
governance process – On-chain Vote: https://t.co/PcHcnrcj2u. If the
vote passes, the deployment is officially approved. 🤗 Huge thanks
to the Uniswap community for the overwhelming support so far! Let's
make this happen! 🦄💫 https://t.co/RePmCRaBlb — Mihailo Bjelic
(@MihailoBjelic) December 10, 2021 As a scaling solution for
Ethereum, Polygon can also provide users with a “battle-tested” and
cost-efficient implementation of the popular AMM. In the DeFi
ecosystem, Uniswap ruled supreme until high transaction fees
price-out a large number of users from the protocol. As Bjelic
pointed out, other major Ethereum protocols have chosen Polygon as
their preferred scaling solution. The co-founder mentioned Aave,
Curve, SushiSwap, Balancer, and others while adding the following
on the advantages of Polygon and its ecosystem: Besides the
impressive number of deployed projects, additional strength of
Polygon’s DeFi ecosystem is that it is already self-sustainable. We
effectively stopped all liquidity mining incentives some time ago,
and yet we keep seeing capital and user inflow 25 and very high
user retention 14. Additional data provided by Bjelic claims that
protocols deployed on Polygon experience an increase in their use
base. After their implementation on this network, Aave reached
700,000 actives users, a 10x increase when compared to the same
metric on Ethereum. Uniswap And Polygon To Onboard Thousands Of New
Users? Of course, most users expect the implementation on Polygon
to decrease the cost of usage for Uniswap. The co-founder of this
scaling solution claimed that Aave also experienced a 16x increase
in its user’s activity. Bjelic further argued that the integration
between Uniswap v3 and Polygon’s PoS will represent a comeback to
the original “DeFi vision”. This sector was created to provide
people with open, and inclusive financial solutions. He added: DeFi
is envisioned as an open, inclusive financial system, so deploying
to Polygon (and other scaling solutions) can be considered as
returning to this original vision. Polygon will explore the
possibility to commit around $20 million from their treasury to
create liquidity incentives. The project abandoned this practice,
but Bjelic claimed they are willing to resume for Uniswap due to
its importance as one of the flagship DeFi protocols. The funds
will be distributed as follow: $15 million might be allocated for
long term liquidity incentives and $5 million for a “special
purpose DAO”. The goal of this organization will be to increase
Uniswap adoption on Polygon. Related Reading | Uniswap Labs Limits
Access To Certain Tokens, What It Could Mean For The DeFi Sector As
of press time, UNI trades at $15,99 with 10.3% profits in the past
day.
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