A port of the Uniswap exchange has been launched, not to leech liquidity like those before it, but to provide scaling solutions for faster and cheaper transactions and token swaps.
Ethereum scaling solutions provider Offchain Labs has announced its own port of Uniswap called Arbiswap which demonstrates Layer 2 (L2) scaling solutions for the world’s most popular decentralized exchange.
In mid-October, the firm announced the first and only fully-featured EVM-compatible Optimistic Rollup called Arbitrum. After an initial testing period, it has now deployed this scaling technology to its new Uniswap port.
Making a Cheaper Uniswap
The scaling tech employed is an optimistic rollup that essentially works by moving transactions off-chain onto an L2 sidechain which is secured by the mainnet. This results in much faster throughput since some of the work is being conducted off the main chain. With increased speed comes cost reductions and Arbiswap is boasting a 55x cost saving.
For comparison, token swaps on Layer 1 Uniswap cost about 110,000 gas considering 10 million gas per block and roughly one block every 13 seconds. This equates to around 7 swaps per second with L1 Ethereum, and prices are still rising under heavy demand.
The Arbiswap rollup chain can reduce the cost to 1,965 gas per swap, meaning that it can handle up to 390 swaps per second, the blog post added.
It continued to state that the next Arbitrum testnet release will include further gas-saving and compression features;
“This is not a proof of concept, or something that looks like Uniswap. This is a complete, fully functional Uniswap V2 in all of its glory, running on rollup.”
A token bridge has been integrated into the user interface which allows ERC-20 tokens to be transferred to the rollup chain and back again. Arbiswap also works with three different wallets; Metamask