- Community members voted to deploy Uniswap v3 on the BNB Chain.
- With implementation, DEX will benefit from BNB Chain’s large user base.
Despite opposition from its largest investor Andreessen Horowitz (a16z), Uniswap v3 was approved for deployment on the BNB chain by community members, with Wormhole serving as a cross-chain bridge for the new version of the platform.
Read Uniswap’s [UNI] Price forecast 2023-2024
According to Tally’s data, a total of 500 addresses took part in the vote on the controversial proposal. These words were cast with a total of 84.8 million votes, of which 65.89% supported the motion, 33.57% opposed it and only 0.53% abstained.
The most prominent opponents of the proposed implementation were a16z and Jesse Walden, who together used 23 million UNI tokens to oppose the deployment of Uniswap v3 on Binance’s BNB chain.
Source: Tally
Uniswap’s largest investor, a16z, was the main maverick against using Wormhole as a bridge across the chain. It prompted a16z to use its wallet company, LayerZero, as a bridge across the chain. However, the Uniswap community has not chosen LayerZero as the Ethereum-to-BNB bridge service from Uniswap.
Porter Smith, partner at a16z Crypto, cited the $326 million hack of the Wormhole platform last year as the main reason for the company’s opposition to using Wormhole as a bridge across the chain.
The company has also expressed concern about the process that DAO uses to evaluate various bridge options.
Realistic or not, here is UNI’s market cap in terms of BTC
Uniswap intends to consolidate its position as the number one DEX
With the green light to deploy V3 on the BNB chain, Uniswap will benefit from the network’s large user base. BNB Chain is known for its large user base, and the deployment of Uniswap V3 on its platform could bring new users to the Uniswap platform.
This can increase liquidity and make the platform accessible to a wider group of users.
As of this writing, on the cryptocurrency’s decentralized exchange (DEX), Uniswap has the largest market share, per data from Dune analytics.
Last week alone, Uniswap controlled 73% of the total market size of the DEX ecosystem. By distributing on the BNB chain and benefiting from the network’s security and large user base, DEX’s market share is expected to increase.
Source: Dune Analytics
According to DefiLlama, the total value of assets locked (TVL) within the Uniswap V3 smart contract was $2.82 billion. Of all the three Uniswap distros, V3 has the highest TVL and runs on more threads.
By distributing on the BNB chain, DEX will see an increase in asset deposits, which will lead to an expansion of TVL as the year progresses.
Source: Defillama