The popular cryptocurrency exchange, Uniswap, is set to launch on the Moonbeam parachain of Polkadot, according to a recent proposal approved on the exchange’s governance forum. Blockchain at Michigan, an educational group, presented the proposal, which passed with near-unanimous support, with only a single token being used to vote against it.
Details of the Proposal
The smart contracts for the Uniswap exchange have already been deployed to Moonbeam, and the only tasks remaining are “front-end integration updates and including Moonbeam to the auto router,” according to the proposal. However, initial liquidity on the exchange may be low, as the proposal warns that promises of liquidity bootstrapping have been temporarily removed due to tumultuous market conditions.
Blockchain at Michigan is exploring the idea of applying for a Moonbeam grant to provide liquidity as soon as possible. If a grant is approved, it would be held by Uniswap’s decentralized autonomous organization. This would help to increase speed and security for Uniswap users, according to Omar Elassar, business development executive at Polkadot developer Parity Technologies.
Polkadot and Uniswap Compatibility
Polkadot is a network of interconnected blockchain networks called parachains that connect to each other and share security through the Polkadot relay chain. The Moonbeam parachain is focused on providing a developer environment similar to Ethereum, with the goal of making it easy for developers to port their Ethereum apps over to the Polkadot ecosystem.
Uniswap is the largest decentralized exchange in the world by trading volume, doing over $480 million in trading per day. It was originally created for the Ethereum network but has been aggressively expanding into other networks over the past few months. Uniswap launched a BNB Chain version on March 15 and deployed to Polygon zkEVm on April 14. It also produced an iOS mobile app on April 14 to facilitate the onboarding of more users.
The addition of Uniswap to the Moonbeam parachain of Polkadot will provide users with high performance, scalability, security, and interoperability. It also demonstrates Uniswap’s commitment to expanding into other networks and making decentralized finance more accessible to users. While initial liquidity on the exchange may be low, the proposal’s exploration of a Moonbeam grant to provide liquidity will help to ensure a smoother launch and further growth for the exchange.