Some of Uniswap’s community proposals go over way better than others. For example, a recent suggestion to expand Uniswap V3 to another chain has been met with tremendous support. Likewise, exploring the benefits of Boba Network can unlock many potential benefits for Uniswap’s protocol and its users.
This Uniswap Proposal Goes Through
Earlier today, we discussed how a16z blocked a community proposal to expand to the BNB Chain. That decision is fueled by the VC’s investment in a competing service to explore cross-chain opportunities. Unfortunately, that also means Uniswap V3 can’t tap into the broad liquidity the BNB chain provides. However, every setback is a new opportunity, and Uniswap V3 will expand to a sixth network fairly soon.
More specifically, a proposal by the Boba Foundation and FranklinDAO suggested bringing the popular DEX to the Boba Network. Exploring a multichain Layer-2 blockchain scaling solution unlocks various benefits for all parties involved.
Following the proposal, it gained support from massive contributors, including FranklinDAO, GFX Labs, and ConsenSys. So it is good to see community voting working as intended.
Today, Uniswap V3 is active across five blockchains: Ethereum, Polygon, Arbitrum, Optimims, and Celo. Most liquidity originates in Ethereum ($3.66 billion), followed by Polygon ($111.3 million) and Arbitrum ($109.93 million).
That is interesting, although it shows the potential layer-2 networks bring to the table. Boba Network is a logical choice in that regard, and the network is compatible with all EVM tools to make the expansion straightforward.
Boba Network Expansion Soon
Adding Boba Network to the list of supported networks is interesting. Its development team has achieved multichain support with Avalanche, Moonbeam, Fantom, and BNB Chain. That doesn’t mean Uniswap will explore any of these chains in the future, but it creates potential opportunities. In addition. Uniswap can expand its community to include Boba’s multichain participants.
That exploration can help prop up Uniswap’s Total Value Locked again. Its numbers have dropped by over 60% following the 2022 bear market. Thankfully, things look up again following January’s price surge, although momentum has stalled. Exploring extra chains is crucial in retaining the dominant DEX position.
It is expected Uniswap V3 will see a liquidity boost following its launch on Boba Network. Boba is home to DEX rival SushiSwap, which garnered over $1.7 million in TVL from this chain. Uniswap’s dominant position should allow it to match that liquidity, if not achieve a higher number. Moreover, Boba’s Hybrid Compute features can help traders benefit from faster transactions at low cost and the deployment of new trading strategies.
Fueling Ongoing Uniswap Growth
Bringing Uniswap V3 to Boba Network paves the way for expanding the DEX’s presence in key Asian regions. Those include South Korea and Japan, with other countries warming up to the multichain Layer-2 solution.
Those countries are also keen on blockchain gaming. Uniswap’s growing presence in Asia can enhance Boba Network’s gaming infrastructure.
Finally, the Boba Foundation will commit $1 million in BOBA tokens to incentivize the adoption of Uniswap V3 on the network. Tokens will be issued as grants to ecosystem projects boosting the DEX’s adoption on the Layer-2 network. The first mission is to incentive liquidity, although developers can explore alternative opportunities.
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