99.3% all of the Uniswap community members who took part in the governance process voted in favor of a proposal to integrate Polygon blockchain layer-2 solutions on Uniswap, indicating users’ pressing desire to fix untenable scalability issues.
Uniswap, a popular decentralised automated market maker (AMM), will use Polygon, an Ethereum scaling solution with a Proof-of-Stake (PoS) chain, to deploy its smart contracts. Following the completion of a community vote, the announcement was announced through Twitter by the official handle of Uniswap Labs.
A $20 million fund for a long-term liquidity mining effort and broad adoption of Uniswap on Polygon will promote the rollout of Uniswap v3 contracts.
According to the original proposal, the AMM will be released on Polygon in its third iteration (V3). The motion received 72.6 million votes in favour and 503,009 votes against, indicating that the initiative had widespread support among UNI holders.
In addition, Polygon CEO Mihailo Bjelic stated that it was the appropriate time for Uniswap to deploy on the platform, citing Polygon’s status as “the second strongest DeFi ecosystem, right after Ethereum L1.” The entrepreneur has expressed his desire to financially and technologically incentivize Uniswap usage.
Bjelic released a series of consensus and temperature checks to assess the community sentiment behind the deployment of Uniswap v3:
“The consensus check 17 passed with 44M (98.87%) YES votes and 500k (1.13%) NO votes. The temperature check 7 passed with 7.79M (~100%) YES votes and 101 (~0%) NO votes.”
Polygon can also provide users with a “battle-tested” and cost-effective implementation of the popular AMM as a scaling solution for Ethereum. Uniswap reigned supreme in the DeFi ecosystem until excessive transaction fees drove a substantial percentage of users away.
Other prominent Ethereum protocols, as Bjelic pointed out, have picked Polygon as their preferred scaling method. Aave, Curve, SushiSwap, Balancer, and others were noted by the co-founder, who also mentioned the following benefits of Polygon and its ecosystem
Uniswap is a protocol for automated token exchange on Ethereum. It was launched on November 2, 2018. Uniswap describes itself as a simple smart contract interface for swapping ERC20 tokens.
Scalability is one of the key challenges with the Ethereum blockchain. As the network is used by more and more decentralized apps and services, and transactions grow exponentially, so do the gas fees.
Polygon is a Layer-2 blockchain protocol that integrates scaling solutions to assist bring broad adoption to the Ethereum blockchain by making transactions cheaper, faster, and more secure.