- Uniswap launched a permissionless cross-chain bridging feature across nine networks, including Ethereum, Arbitrum, and Polygon.
- The bridging uses Across Protocol, ensuring fast, secure transactions from within the Uniswap Wallet.
- Uniswap launched Unichain on October 10; an Ethereum L2 rollup intended to provide cross-chain liquidity.
- $UNI, Uniswap’s token, reached $8.08, an 84% growth year-over-year.
Uniswap pioneered the world of decentralized crypto exchanges (DEXs), becoming one of the top ten exchanges with $4.78B in TVL (Total Value Locked).
Now Uniswap looks poised to ride higher with permissionless cross-chain bridging.
But behind the technical innovations and the parabolic growth of $UNI’s price, are there any lingering concerns?
Let’s take a look.
Building Bridges on Uniswap Through Cross-Chain Bridging
Back in July, a poll for Uniswap users indicated that in-app bridging (moving tokens from one chain to another without swapping) was the most-wanted feature for 47% of users.
Four months later, Uniswap introduced permissionless cross-chain bridging across nine major networks, including Ethereum, Polygon, and ZKsync.
These bridges are powered by Across Protocol.
And they allow users to perform fast and secure transactions using native tokens and stablecoins. Accessing this feature is straightforward through the Uniswap interface or Wallet, eliminating reliance on external bridges.
By not requiring an external third-party app, Uniswap hopes to keep the process as smooth and as fast as possible.
Speed is important, particularly in the fast-paced world of DeFi or DEXs like Uniswap.
Creating a Cross-Chain World
Despite the cross-chain bridge launch, $UNI initially saw a slight price decline.
This marks a step toward Uniswap’s vision of seamless cross-chain transactions.
While Across Protocol provides access to multiple chains, Uniswap continues to develop its own blockchain. Unichain is a ‘DeFi-native Ethereum L2,’ launched earlier this month to build on the growing importance of Ethereum L2 chains, which offer faster transaction speeds and lower fees.
Even while building its own solution, Uniswap continues to advocate for a cross-chain world.
Cross-chain architecture relies on smart contracts to connect one chain to another. It’s a far more scalable and flexible solution to blockchain interoperability than the older multi-chain architecture.
And Uniswap is a leading proponent of that.
The idea behind Unichain and Uniswap’s in-app bridges is to facilitate a move to a more open-source, interconnected crypto world. At least for Ethereum and the network of blockchains built using the Ethereum Virtual Machine.
Unichain is built on the Superchain… technical innovations introduced by Unichain are open source and available for any rollup to adoptUnichain
Uniswap Labs received some pushback over concerns about governance, as key decisions regarding Unichain’s launch were made without DAO input.
Summary: Both the DEX and $UNI Enjoy Continued Success
Uniswap’s recent moves highlight its ambition to enhance its decentralized ecosystem. Unichain aims to reward users who stake $UNI tokens, creating an additional utility.
$UNI itself has enjoyed an impressive year so far, exploding 84% in the past year to reach $8.08.
We like Uniswap’s focus on cross-chain architecture.
Uniswap Labs is correctly focused on building for the future, as well as profiting in the present.
And with the Uniswap DEX ready to explode as it passes the $2T volume mark, big things lie ahead for one of crypto’s leading DEXs.
References
- Uniswap rolls out permissionless cross-chain bridging (Cryptopolitan)
- Across Protocol (Across)
- Unichain (Unichain)
- Uniswap governance spat sparks worries (DL News)
