Uniswap is preparing to launch a layer 2 blockchain called Unichain designed to enhance the scalability of decentralized finance (DeFi) applications. Unichain is currently in the testnet phase and aims to address the high transaction costs and slow speeds commonly associated with DeFi operations on Ethereum. To achieve this, Unichain features fast block times of 1 second and works with Flashbot to incorporate 250ms sub-blocks to create a near-instantaneous transaction experience. This new blockchain will be integrated into the Optimism Superchain, enabling interoperability between Ethereum and other layer 2 chains.
Reminder:
Testnet is designed to create an experimental environment to test the reliability of the chain.
Token swaps on testnet do not represent real assets and cannot be traded outside of testnet
— Uniswap Labs 🦄 (@Uniswap) October 12, 2024
On October 13, Michael Nadeau, founder of The DeFi Report, said at and UNI token holders have not captured any of its value. . According to Nadeau, 100% of the fees are paid to liquidity providers (LPs), Ethereum validators, MEV bots, and layer 2 sequencers.
Nadeau noted that this dynamic will change with the launch in late 2024 of Unichain, Uniswap’s new layer-2 blockchain designed to enhance the scalability of decentralized finance (DeFi) applications. . He said Uniswap Labs and UNI token holders will now pay payment fees amounting to $368 million previously paid to Ethereum validators. Additionally, Nadeau highlighted that Uniswap will also capture an estimated $100 million in miner extractable value (MEV) by owning validators on Unichain.
Nadeau noted that LPs will continue to receive 100% of transaction fees and may have the opportunity to participate in both payments and MEV once Unichain goes live. He said the winners of this move include Uniswap Labs, UNI token holders and LPs, who will benefit from new payments and MEV acquisition. Mr. Nadeau also identified Optimism as the beneficiary given that it will receive a portion of the settlement proceeds and MEV from Unichain.
Meanwhile, Nadeau said Ethereum validators and ETH holders stand to lose revenue with Uniswap’s transition as less ETH will be burned and validators will miss out on $368 million in settlement fees. He emphasized that there is. Similarly, sequencers with layer 2 solutions such as Arbitrum and Base will also be affected by MEV losses and settlement fees to Unichain, he noted.
Nadeau summarized that Uniswap’s transition to Unichain will give the protocol control over much of the value it creates through interfaces and smart contracts.
Featured image via Pixabay
