Uniswap, a decentralized trading system, went live on Polygon, the Ethereum Layer-2 scaling solution, on Wednesday, December 22.
The news comes about a month after Polygon co-founder Mihailo Bjelic proposed to Uniswap that the Uniswap version 3 be launched on Polygon. The Uniswap community has also voted overwhelmingly in favor of the plan, with 72 million token holders backing it. Polygon co-founder Mihailo Bjelic commented on the development, saying:
“With this deployment, Uniswap as the flagship Ethereum project returns back to the original promise and again offers low fees and open access to everyone.
Polygon’s DeFi ecosystem is the second strongest one in the industry, right after Ethereum L1. Uniswap will be a major addition to this flourishing ecosystem, given that it is an important and often used building block (aka money lego) in many modular DeFi implementations.”
The active functions of loan, borrowing, and trading are through DeFi blockchain-base technologies. However, DEX platforms that run on the Ethereum blockchain, like as Uniswap, have a serious problem with the high gas charge.
For Uniswap customers, launching on a Layer-2 platform like Polygon will lessen the burden of high gas fees. (UNI) users can now swap tokens on the Polygon blockchain. Of course, through Uniswap’s official interface, thanks to the launch on Polygon.
This year, UNI was one of the largest DEXs, supporting approximately $600 billion in trading volumes. Holders of Polygon’s native cryptocurrency MATIC will benefit from the deployment as well. The MATIC token is for voting on governance issues as well as to pay the transaction fee.
The price of UNI and MATIC has risen as a result of the announcement. The price of Uniswap (UNI) has risen 10% in the last 24 hours and is now trading at $16.73. Polygon’s MATIC, on the other hand, has risen to a new all-time high of $2.70.