According to a proposal posted on Uniswap’s governance forum on April 7, Conflux, a regulatory-compliant public blockchain located in China, wants to adopt Uniswap v3 on its network. The move comes only days after the source license for Uniswap v3 expired, allowing developers to fork the system and launch their own decentralized exchange.
According to the plan, the deployment would allow “access to millions of potential new users, particularly in the Chinese and Asian markets.” According to Conflux, blockchain traffic increased in the first quarter of 2023. The network has a market capitalization of almost $1 billion and a total value of $45 million locked on-chain.
“Currently, China receives 84% of all global blockchain applications.” In comparison to the UK and the US, 11% and 14%, respectively. […] This demonstrates that China is one of the most established Web3 marketplaces, and exposure is critical for all initiatives,” claimed Conflux in the application.
According to Conflux, regulatory crackdowns in the United States and Europe will aid the crypto industry’s expansion in Asian markets, adding that over 80 crypto businesses want to open an office in Hong Kong, offering a crypto bridge to mainland China.
Ambre Soubiran, CEO of institutional crypto market data firm Kaiko, agrees. “With the US being more stringent than ever on crypto and Hong Kong regulating in a more favorable way […], the center of gravity of crypto assets trading and investments will clearly shift more towards Hong Kong,” he said in a recent interview.
In addition to potential market reach, incentives for applications built on top of Uniswap v3 on the Conflux Network include forming liquidity pools for CFX token trading pairs, notably CFX-USDT, CFX-BTC, and CFX-ETH. These liquidity pools would be valued at $2 million and locked in for two years. In addition, the Conflux Foundation would pay $1 million in “liquidity incentives.”
Conflux is a layer-1 blockchain that employs a hybrid proof-of-work and proof-of-stake algorithm. The network has announced a collaboration with China Telecom to produce a blockchain SIM (BSIM) card. The BSIM will provide a safe location to store digital private keys and will be able to utilize the signature to transfer funds to other users. A “one-click direct check” option will also be available, allowing users to check for transaction details and status progress in real-time.