Uniswap, one of the most popular decentralized exchanges (DEXs) on Ethereum, is coming to Polkadot via Moonbeam, a parachain that provides an Ethereum-compatible environment. This means that users will be able to swap tokens on Uniswap using Polkadot’s native token, DOT, as well as other assets that are bridged from Ethereum or other blockchains.
1/ @Uniswap – the most popular decentralized exchange by daily traded volume – is coming to Polkadot via the @MoonbeamNetwork parachain, increasing volume & liquidity across the ecosystem! pic.twitter.com/lKaceLv6ce
— Polkadot (@Polkadot) May 17, 2023
Uniswap is a protocol that allows anyone to create and trade any pair of tokens without intermediaries, fees, or censorship. It uses an automated market maker (AMM) model, where liquidity providers deposit tokens into pools and earn fees from traders who swap tokens using those pools. Uniswap also has a governance token, UNI, that allows holders to vote on proposals that affect the protocol.
Polkadot Welcomes Uniswap with Open Arms
Moonbeam is a parachain that aims to make it easy for developers to deploy Ethereum-based applications on Polkadot. It supports the Ethereum Virtual Machine (EVM), Web3 API, and various Ethereum tools and standards.
Moonbeam also integrates with Polkadot‘s cross-chain communication (XCM) protocol, which enables interoperability with other parachains and relay chains.
By deploying Uniswap on Moonbeam, users will be able to access a wider range of tokens and liquidity sources than on Ethereum alone. For example, users will be able to swap DOT for ERC-20 tokens, or vice versa, without leaving the Polkadot ecosystem.
Users will also benefit from lower fees and faster transactions than on Ethereum, thanks to Polkadot’s scalable and sharded architecture.
The deployment of Uniswap on Moonbeam is expected to happen in June 2023, following a near-unanimous governance vote by Blockchain at Michigan, an educational organization that supports blockchain innovation.
The vote was conducted using UNI tokens on Snapshot, a decentralized voting platform. The proposal received 99.9% approval from UNI holders who participated.
Uniswap’s expansion to Polkadot via Moonbeam is a significant milestone for both projects and the wider blockchain industry. It demonstrates the potential of cross-chain interoperability and the value of providing a seamless and familiar user experience for existing Ethereum applications. It also showcases the growing popularity and adoption of decentralized exchanges as alternatives to centralized platforms.