The goal of decentralized finance blockchain-based tools for lending, borrowing trading has been to enable individuals and users who are not well-positioned to benefit from the financial system to have and invest but so far, all that has not been made possible due to high fees on some networks.
Uniswap has been working towards resolving that problem and recently revealed that it has launched on Polygon, a blockchain platform created to relieve some of the burdens on the Ethereum network. Uniswap and the Ethereum scaling system, Polygon noted that all Uniswap version 3 contracts had been deployed on the Polygon mainnet.
The move comes a few weeks after Polygon co-founder Mihailo Bjelic submitted a request on the Uniswap governance portal to deploy Uniswap v3 on Polygon. The holders of Uniswap’s native UNI coin, which are mostly exchange users, run the exchange. They then decisively voted last week to bring smart contracts from the v3 version of the protocol to Polygon.
According to reports, the move was endorsed by more than 72 million Uniswap (UNI) token holders, and Uniswap is now active on Polygon. This means that Uniswap users can now use the Polygon blockchain to swap tokens through Uniswap’s official interface. Only a small fraction of 503,000 votes were against the implementation of Uniswap’s V3 on Polygon. The vote was concluded on Dec. 18, and the deployment of Uniswap V3 on Polygon occurred on Dec. 23.
In his announcement of the deployment, Polygon’s Mihailo Bjelic wrote, “ With this deployment, Uniswap as the flagship Ethereum project returns to the original promise and again offers low fees and open access to everyone.”
Polygon’s fight for reduced fees
Polygon has been leading the charge to reduce transaction fees. The protocol is built on top of Ethereum, but as part of a “multi-chain system,” it may connect to other blockchains. Its design increases scalability by routing Ethereum transactions over sidechains, in addition to interoperability. It’s similar to releasing pressure on a dam by cutting a river off to the side.
This results in lower transaction costs, which is a huge plus for Uniswap users, who conduct all of their buys and sell transactions on the blockchain.
Holders of MATIC, Polygon’s native token, which can be used to vote on governance issues as well as pay transaction fees, have welcomed the deployment and appear to be benefiting from it. The MATIC price has increased by 35 percent in the previous week and about 14 percent in the past day, hitting a new high of $2.66.
A Good Year for Polygon
Since the year began, the Polygon network has been one of the best performers, with network development and partnerships attracting a lot of interest from crypto fans. The number of unique Polygon addresses surpassed 100 million in October 2021, a great achievement by any measure. At one point, the number of daily active addresses on Polygon surpassed Ethereum.
Polygon also began experimenting with NFTs in 2021, with the launch of fractional real estate platform Futurent on the network. So far, Polygon’s users can agree that it has been a good year.