- Uniswap officially announced its deployment on BNB Chain
- Integration means protocol will take portion of PancakeSwap’s market share
Considered the world’s largest Decentralized Exchange (DEX), Uniswap’s V3 has now been deployed on the BNB Chain. According to its 15 March disclosure, the integration would allow tokens under the Binance-founded smart contracts blockchain to be swapped on Uniswap’s platform.
1/ Uniswap is now live on @BNBCHAIN🔶🦄
Start swapping your fave BNB tokens on the Uniswap web app today! https://t.co/JTiOmVWZl9 pic.twitter.com/pseoJ2qIku
— Uniswap Labs 🦄 (@Uniswap) March 15, 2023
Realistic or not, here’s UNI’s market cap in CAKE’s terms
Historically, the protocol has mostly operated on the Ethereum Mainnet. However, the new development now offers users of the DEX a faster and cheaper way to transact depending on the tokens involved.
In February, there was a governance proposal for the deployment. At that time, the lead proposer 0x Plasma Labs opined that Uniswap could extend its market share by looking in the direction of BNB Chain. In the aforementioned space, PancakeSwap [CAKE] already enjoys a significant market share.
With over 55 million votes by UNI holders, the protocol was able to get headway with 66% of the votes in favor of the scheme. PancakeSwap has always been the leading DEX under Binance Smart Chain with a Total Value Locked (TVL) OF $2.48 billion.
Here, TVL refers to the amount of unique deposits and staked assets under a protocol. However, with Uniswap’s presence, the spot could be up for grabs. This, because the difference between Uniswap and PancakeSwap’s TVL is more than $1 billion, based on DeFi Llama.
With only Curve Finance [CRV] ahead of both projects, it could be difficult for CAKE to catch up.
Source: DeFi Llama
Just recently, Uniswap DEX’s volume surged impressively, same as PancakeSwap’s. This, after several Centralized Exchanges (CEXs) halted USDC trading after its parent company was exposed to a recent bank collapse.
Two can contribute and it’s no hindrance
Nonetheless, BNB Chain’s leadership seems to have no problem operating with both exchanges. In fact, according to its blog post, the integration would allow the chain to enter new territory.
Furthermore, the statement also referred to the potential of increasing liquidity and accessibility for users on the chain. Similarly, BNB Chain’s Director of Growth considered the collaboration a welcome development. He said,
“We are delighted to see Uniswap’s continued commitment of delivering value to its users and building for the future of decentralization.”
How much are 1,10,100 UNIs worth today?
Meanwhile, reaction from the Uniswap community has been one of elation. Many are optimistic that it would only make the protocol’s ecosystem stronger. In fact, some are also of the viewpoint that users would be able to enjoy faster and cheaper transactions like it is with Arbitrum and Polygon.
