For several months, the Ethereum network has been facing significant congestion resulting in increased transaction fees. As a result, the use of its decentralized applications has become extremely expensive. Even though the situation has improved greatly recently, Uniswap is exploring the possibility of migrating to second layer solutions.
Arbitrum: the solution to reduce fees
On May 29, Offchain Labs announced the deployment of a beta version of Abitrum on the Ethereum mainnet.
Arbitrum is a second layer solution based on optimistic rollups. It allows off-chain transactions to be processed and periodically rolled over to the Ethereum mainnet in batches.
Initially, the beta version will only be open to developers so that they can deploy their contracts. Thereafter, the network will only be available to end users once said contracts have been tested and proven.
According to official announcements, more than 250 projects have already expressed their willingness to migrate to the new second layer solution.
Uniswap ready to migrate to Arbitrum
It didn’t take long for Ethereum’s number one DEX, Uniswap, to announce its willingness to export to Arbitrum. To do so, Robert Leshner, co-founder of the Compound protocol, created a poll via the Uniswap governance module to get the community’s opinion on the deployment of Uniswap on the second layer solution.
Unsurprisingly, the “for” far outweighed the “against,” with more than 43 million UNI tokens in favor of the deployment versus only 309 against.
“Assuming the vote passes, we intend to support the community by deploying smart contracts V3 on Arbitrum. We have already started working on interface support and planning the deployment. “
Hayden Adams, Uniswap co-founder (Twitter)
As a reminder, Uniswap has an on-chain governance. This means that UNI token holders can take part in decisions about changes to the protocol.
This launch of Uniswap on Arbitrum will allow the platform to remain competitive with DEX deployed on other, less expensive chains. This also comes ahead of the much anticipated rollout on the Optimism network, whose launch originally planned for January 2021, has been pushed back to July.
