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Uniswap unveils Layer-2 solution Unichain as part of Optimism Superchain

  • Uniswap Labs announced the launch of Unichain, its Layer-2 solution built on the Ethereum blockchain. 
  • Unichain is designed to scale cross-chain transactions and swapping.
  • UNI is up 10% following the announcement.

Uniswap (UNI) saw double-digit gains on Thursday after unveiling the launch of its DeFi Layer-2 solution, Unichain. Unichain is built to provide seamless cross-chain transactions while scaling the Ethereum blockchain.

UNI rises following Uniswap Labs' launch of Unichain

Uniswap Labs announced the launch of a testnet for its Ethereum Layer-2 solution known as Unichain. This new chain is designed to solve some of the interoperability issues in DeFi while boosting transaction speed for Ethereum's Main chain.

"We're launching Unichain – a fast, decentralized Superchain L2 that's built to be the home for DeFi and liquidity across chains," Uniswap Labs stated in an X post on Thursday.

The firm claims Unichain is designed to scale the Ethereum roadmap by offering a 95% cost reduction compared to the Mainchain.

Uniswap also stated that its partnership with Flashbot, an organization focused on addressing the challenges posed by Ethereum Maximal Extractable Value (MEV), would speed up the creation of blocks on Unichain.

Due to its dynamic user base, the Ethereum Layer-1 network often suffers from high gas fees during periods of congestion. This also leads to slow transaction speeds and more opportunities for validators to extract MEV from transactions.

Unichain announced it would navigate the challenge through a block builder that utilizes a trusted execution environment (TEE), which will improve transaction speed and transparency.

The DeFi platform also plans to launch cross-chain functionality through ERC-7683, a proposed token standard for enhancing cross-chain transactions while minimizing errors for better security.

Unichain will be built using the OP developer tool stack, and it will be a member of the Optimism Superchain, a unified network of Layer 2 blockchains, including the Base network, Optimism mainnet, Blast, Celo, etc.

As these chains become more interoperable and cheaper to launch, the crypto market may witness a proliferation of app-specific L2s across the DeFi landscape.

Some crypto community members highlighted that launching a native Layer-2 chain for Uniswap could impact the Ethereum mainnet.

According to DeFillama, Uniswap generates the highest revenue for Ethereum, contributing as one of the largest user bases for the Layer-1 chain.

Following the announcement, Uniswap's native token, UNI, surged about 14% before seeing a mild correction.

Author

Michael Ebiekutan

With a deep passion for web3 technology, he's collaborated with industry-leading brands like Mara, ITAK, and FXStreet in delivering groundbreaking reports on web3's transformative potential across diverse sectors. In addi

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