In a strategic move to expand its reach and maintain a competitive edge in the decentralized finance (DeFi) space, Uniswap, the popular decentralized exchange platform, is considering deployment on the Fantom blockchain.
The proposal has been put forward by Blockchain at Columbia, the unit dedicated to distributed ledger technology at Columbia University, in collaboration with the Fantom and Axelar teams.
The motivation behind this proposal lies in the need for Uniswap to establish market share in other ecosystems following the expiry of the Uniswap v3 Business Source License (BSL).
Other decentralized exchanges, such as Beethoven X, are eyeing the opportunity to capture market share on the Fantom chain. To stay ahead of the competition, Uniswap must swiftly establish its presence on Fantom.
Advantages Of Fantom For Uniswap Deployment
The deployment on Fantom would leverage the Axelar network, a decentralized interoperability platform that connects multiple blockchain ecosystems. This collaboration would offer a secure and robust bridge solution for Uniswap’s governance on Fantom.
Axelar’s General Message Passing capability ensures complete composability across Web3, enabling developers to call functions on any connected chain.
Additionally, Fantom Chain’s lower transaction costs create a more affordable trading environment, encouraging active participation in DeFi protocols.
The proposed deployment also mitigates risks associated with network congestion, high gas fees, and potential vulnerabilities in the Ethereum network. By diversifying its blockchain infrastructure, the platform ensures long-term resilience and stability.
However, deployment on Fantom would position it as the leading DEX and blue-chip protocol in the ecosystem, capturing a substantial market share.
The Fantom Foundation and Axelar will handle the deployment and associated costs without grants or subsidies offered to Uniswap. While a cross-chain deployment method may be considered in the future, the urgency of this proposal necessitates the currently proposed deployment with Axelar.
If approved, this deployment would enable the platform to expand its user base, enhance performance, and drive innovation in the DeFi landscape. Additionally, it will enhance its performance and scalability, and mitigate risks associated with network congestion and high gas fees.