Uniswap Deploys v2 Protocol on Additional Chains to Simplify User Experience
Uniswap, one of the leading decentralized cryptocurrency exchanges (DEX), has announced the deployment of its v2 protocol on six additional chains. The newly supported chains include Arbitrum, Polygon, Optimism, Base, Binance Smart Chain, and Avalanche.
Uniswap’s Motivation for Expanding v2 Protocol Deployment
Uniswap Labs, the developer behind the protocol, aims to simplify the experience for Liquidity Providers (LPs) by deploying the v2 protocol on more chains. While the v3 protocol offers advanced features for active LPs, the development team believes that the v2 protocol offers a more straightforward approach.
- V2 pools cover the entire price range by default, reducing upfront decisions and minimizing active involvement for LPs.
- This simplification makes Uniswap more accessible to a broader range of users.
Additionally, using the v2 protocol on multiple chains offers cost efficiency advantages. Creating pools on v2 is more gas efficient, resulting in lower gas costs for liquidity providers. This cost reduction translates into affordable swaps on the platform. Moreover, using v2 on Layer 2 scaling solutions reduces the risk of frontrunning and manipulative practices.
UNI Price Correction Amidst Solid Platform Metrics
Despite these positive developments, Uniswap’s native token, UNI, has experienced a significant correction in line with the overall market trend. Currently trading at $7.22, UNI has seen a 4.4% price drop in the past 24 hours and a 1.1% decline in the last trading hour.
- However, UNI has performed well in the market, with price increases of 14.7% and 16.8% in the past fourteen and thirty days, respectively.
Although the trading volume of the UNI token has declined by 69.3% over the past 30 days to $2.79 billion, the total value locked (TVL) within Uniswap’s smart contracts has increased by 14.4% to $4.76 billion.
Hot Take: Uniswap Expands v2 Protocol Deployment to Enhance User Accessibility
Uniswap’s decision to deploy its v2 protocol on additional chains is driven by its commitment to simplifying user experiences and reducing costs for liquidity providers. By offering a straightforward approach with default price range coverage, Uniswap aims to make decentralized trading accessible to a wider audience.
Despite the recent correction in UNI’s price, the platform’s metrics remain solid, with impressive price gains over the past month and a substantial increase in total value locked. These developments position Uniswap as a leading DEX in terms of both usability and market performance.
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