Uniswap, the leading decentralised exchange (DEX), has introduced its own layer-2 blockchain network called Unichain. The announcement was made by Uniswap Labs on October 10. Currently in its testing phase (testnet), Unichain aims to provide faster and more affordable transactions while improving interoperability between blockchain networks.
Better Liquidity and More Decentralisation
Uniswap’s CEO, Hayden Adams, stated that Unichain will offer the benefits of layer-2 networks, like increased speed and reduced costs, with better access to liquidity across different chains and enhanced decentralisation.
As of October 10, the decntralised exchange controls nearly $5 billion in total value locked (TVL) across 25 blockchain networks, based on industry data.
Unichain is part of Optimism’s Superchain, a network of interconnected layer-2 solutions using Optimism’s technology. Other networks in this superchain include Coinbase’s layer-2 Base and SNAXchain, which powers Synthetix’s decentralised perpetual exchange.
Uniswap Labs revealed that Unichain’s block times will initially be set at 1 second. However, the plan is to reduce block times to under 250 milliseconds, creating a near-instant transaction experience for users.
Unichain will allow traders to access liquidity from other layer-2 networks within the Optimism Superchain. Currently, Base and Optimism networks hold around $2.25 billion and $625 million in TVL, according to DefiLlama data.
In collaboration with cross-chain bridging protocol Across, Uniswap Labs has proposed an upgrade to the Ethereum network called ERC 7683. This upgrade aims to synchronise cross-chain messaging across all layer-2 networks and standardise communication using “intents.”
Uniswap in Partnership with Flashbots
Uniswap Labs is also working with Flashbots to integrate Rollup Boost, a modular block-building platform. Rollup Boost includes extensions like 250-millisecond block times and “verifiable priority ordering,” which helps applications manage Maximum Extractable Value (MEV). Flashbots are known for their efforts to protect users from the negative effects of MEV, ensuring block builders don’t profit at the expense of traders.
Unichain is set to bring greater efficiency, faster transactions, and improved decentralisation to Uniswap’s ecosystem, enhancing its already strong presence in the decentralised finance (DeFi) world.
