DeFi

Uniswap Contributors Propose To Extend The DEX to Layer 2 Base

Key Points:

Three key Uniswap contributors have begun negotiations to investigate a possible deployment on Coinbase’s Layer 2 blockchain Base.
If the proposal is approved, GFX Labs will be responsible for the technical implementation of the contracts on Base.
It will be beneficial to Base when the DEX deploys on the blockchain.

Contributors of Uniswap have started to discuss the potential of deploying on Coinbase’s Layer 2 Base.

Three groups of Uniswap contributors made the proposal: she256, Michigan Blockchain, and GFX Labs. The proposal’s backers are members of Uniswap’s decentralized autonomous organization. One of the three, GFX Labs, will be in charge of the contract’s technical implementation on Base, but only if the proposal is accepted.

If the request is approved, it will be a boost to Coinbase’s project. The exchange initially unveiled a testnet version of Base in February, ahead of a planned mainnet debut later this year, with the goal of providing developers with a more accessible, cost-effective platform for creating decentralized applications on-chain.

One of the most popular decentralized financial apps is Uniswap v3. For the previous 24 hours, the decentralized exchange protocol that permits token swaps handled about $500 million in trade activity on the Ethereum mainnet alone.

v3 is now accessible on numerous EVM-compatible chains, including Ethereum, Celo, BNB Chain, and other Layer 2 networks like Arbitrum. Contributors are now focusing on Base as the next possible launch network.

The Uniswap Foundation suggested shortly after Base’s testnet debut that the governance process to install Uniswap’s version 3 on Base will begin, despite Base being in the test phase.

It’s worth noting that Uniswap outperformed Coinbase in terms of trade volume in April, marking the fourth month in a row. The DEX is a decentralized trading mechanism that comes in three flavors and is accessible on six different blockchains. Coinbase, on the other hand, only supports Ethereum and other EVM-compliant networks.

The Uniswap community has suggested that the v3 deployment be resumed on Polkadot’s EVM-compatible parachain, Moonbeam.

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Harold

Coincu News

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.