Ethereum scaling solution Polygon has strengthened its grip on the DeFi ecosystem further after members of Uniswap voted in favor of deploying its smart contracts on the former.
The third iteration of the decentralized Automatic Market Maker, Uniswap V3, will be rolled out on Polygon “within a few days,” revealed a Twitter announcement by the L2 Solution.
The process for Uniswap’s deployment on Polygon began about a month back, when a proposal for the same was raised on the DEX’s governance protocol. The motion was passed with 72 million votes in favor and 503,009 against, indicating wide acceptance for this move among UNI holders.
For its part, Polygon devs had sounded both insistent and desperate in their attempt to rope in Uniswap, granting the DEX special treatment and allocating significant funds towards its development.
Scalability solutions lighten the load taken by Ethereum’s mainnet, thus offering cheaper and faster transactions. Since the congestion issues faced by Ethereum have become more common, scalability solutions like Polygon are enjoying significant popularity among DeFi users.
No project left behind
While various Ethereum L1s like Aave, Curve, and Sushiswap, along with numerous smaller DeFi projects, had already deployed their smart contracts on Polygon, the L2 had previously suggested that the ecosystem feels “incomplete” without DeFi’s “flagship project” under its helm.
In its proposal, the platform also revealed its intention to allocate around $20 million to the protocol to incentivize liquidity, solely due to the respect and importance Uniswap holds.
The negotiable allocation would include up to $15 million for a long-term liquidity mining campaign and the rest for a special purpose DAO. This will be focused on the overall adoption of Uniswap on Polygon, the proposal further noted.
The enthusiasm from the community was showcased early on when the first round of voting held in November culminated in 7.79 million Uniswap holders voting yes for the deployment, despite only 25,000 affirmations being required.
In a celebratory tweet, Polygon co-founder Mihailo Bjelic reiterated Polygon’s mission to make Ethereum accessible and affordable.
Huge thanks to the Uniswap community and kudos to Uniswap Labs for rapid deployment, very impressive!
We’re going back to the original promise of Ethereum; its #1 app is again affordable to everyone! 🤗💜 https://t.co/sHtpZfAGhQ
— Mihailo Bjelic (@MihailoBjelic) December 18, 2021
Swapping for a better future?
Proponents of the Layer 2 solution are already wondering what the future holds. In fact, one Twitter user opined that even central exchanges might start rebalancing trades from Polygon in the future due to better price availability than offered by the market makers.
@Uniswap daily ETH/USD volume is >$1B on mainnet daily which is more than Coinbase even with heavy gas cost.
It’s soon going live on @0xPolygon which has near 0 gas cost.
Will Polygon become the main hub for swaps using the most advanced swapping algorithm ever created?
— samyakjain.eth (@smykjain) December 14, 2021
Interestingly, a recent report by Alchemy had found that almost 3,000 dApps were deployed on Polygon by October end, up from just 30 last year.
To encourage such developmental activity further, Polygon also launched a $200 million investment fund with Seven Seven Six. The fund will be focusing on Web3 development on the Polygon ecosystem, especially blockchain-based social media projects and gaming.