Voting to select the best technique to integrate Uniswap v3 into the BNB network is currently ongoing. The vote process, on the other hand, has been anything but simple, with some venture capitalists (VCs) taking opposing viewpoints on the deployment.
But, if this deployment occurs, what impact will it have on the BNB chain and the token?
On February 2, 0xPlasma Labs presented a governance proposal on behalf of the Uniswap Community. The most recent Uniswap version was to be placed on the BNB Chain.
The request was formally filed after getting 20 million yes votes (80.28%) and 4.9 million no votes (19.72%).
On February 8, 7.03 million people voted in support of the plan. This was led by ConsenSys, the inventor of the popular MetaMask digital wallet.
ConsenSys has a stake in the underlying UNI tokens, which are presently worth around $47.5 million, and these votes are denominated in UNI. a16z, which apparently holds 55 million UNI tokens, voted against the plan with 15 million UNI tokens.
The deployment’s reliance on the Wormhole bridge was stated as the cause for the rejection, with LayerZero being recommended as a viable interoperability protocol. As of this writing, 77.56% of respondents supported the concept, while 22.07% opposed it.
The purpose of Uniswap is to boost protocol volume and traffic by connecting several chains. The BNB chain, on the other hand, will benefit from the protocol’s eventual deployment.
In November 2021, the BNB chain’s transaction volume surpassed $16,000,000. However, there has been a significant reduction; as of this writing, the most current total was little more than 3 million. The figure may climb following the implementation of UNI.
Furthermore, Total Value Locked (TVL) is another BNB metric that could improve if UNI is implemented. As of this writing, its TVL was $5 billion, a substantial decline from its peak.
Because it is one of the largest Decentralized Finance protocols, UNI has the potential to make significant contributions to BNB.
Given the current situation of the market, Binance’s [BNB] price movement has not been as exciting as one may have hoped.
As of this writing, it was selling for around $319, with a value drop of more than 2% reported.
However, the Relative Strength Index indicated that it was still trending upward. The RSI line was evident at 56, indicating that the bullish trend was fading.
Because BNB is the native coin of the BNB ecosystem, a successful UNI deployment could have a positive effect on BNB price movement.