Cryptocurrency News

80% of Voters Support Deployment of Uniswap v3 on BNB Chain

By January 26, 2023 No Comments
Uniswap (UNI) decentralized exchange (DEX) image cover

Key takeaways:

  • 0xPlasma Lab proposed integration of Uniswap v3 with BNB Chain
  • The proposal was meant to gauge the interest of the Uniswap community and received 80% of the vote
  • The authors of the proposal argue that deployment of Uniswap v3 on BNB Chain could greatly benefit both blockchain products

20 million UNI tokens were cast in favor of BNB Chain integration

A proposal by DeFi and NFT aggregator 0xPlasma Labs to deploy the decentralized exchange protocol Uniswap on BNB Chain garnered 80% of the vote on the Uniswap DAO. In total, 20 million UNI tokens were cast in favor of the proposal, while 4.9 million were cast against it.

BNB Chain (formerly Binance Smart Chain) is the blockchain platform that powers the BNB cryptocurrency. It is a high-performance, decentralized network that enables the creation of digital assets and the execution of smart contracts. BNB is used to pay for transaction fees on the Binance exchange, as well as other services on the Binance ecosystem.

0xPlasma Labs cited several reasons why it would be beneficial for the world’s most popular DEX to integrate with BNB Chain. The company argued that BNB Chain is the logical next step for Uniswap v3’s expansion due to a multitude of reasons, including:

  • A large and growing user base
  • High transaction speeds and low fees
  • BNB Chain’s robust DeFi and dApp ecosystem 
  • BNB Chain’s support for tokenization and inclination to support new DeFi use cases
  • Potential integration with Binance’s products and services
  • $1 billion+ of TVL and increased trading volume (which should result in new inflows in the form of collected trading fees)
  • Potential increase in the adoption of Uniswap’s NFT offering
  • 1 to 2 million new Uniswap v3 users and new UNI holders

The 0xPlasma Labs team highlighted several reasons why the BNB Chain ecosystem would benefit from Uniswap deployment. “BNB Chain has a big DeFi development community that needs a more advanced DEX ecosystem to boost the general DeFi ecosystem development,” wrote the authors and added, “We need to educate all BNB community about what is real DeFi and yield using Uniswap v3 as a reference.”

At the time of the proposal, Uniswap v3 had a TVL (total value locked) of $3.65 billion, split among 5 chains: Ethereum ($3.41B in TVL), Polygon ($101.93M in TVL), Arbitrum ($85.98M in TVL), Optimism ($47.04M in TVL), and Celo ($1.26M in TVL).

The authors estimate that a potential TVL from BNB Chain integration would amount to $1.18 billion, which would position BNB Chain firmly in second place, trailing only Ethereum.

Last week’s proposal was just a “temperature check” to see whether the Uniswap community would support the expansion to BNB Chain. Given the overwhelming support, it is safe to assume that a “real” vote will be taking place soon.