Uniswap Community Taps Boba Network as the Next Frontier for Expansion

The 2022 crypto market setbacks have impacted various networks and projects. Even Uniswap, the leading decentralized exchange, saw its liquidity decrease spectacularly. Things are looking up again, and the upcoming expansion to Boba Network should help push things in the right direction again.

Uniswap Eyes A Sixth Network

People who are familiar with the Ethereum ecosystem will know Uniswap. It is the premier decentralized exchange on the network. Users can exchange various ERC-20 tokens, NFTs, and . In addition, they can provide liquidity to trading pools and collect a share of trading fees. It is a robust and prominent ecosystem that has undergone three protocol iterations since its launch.

However, the protocol isn't immune to bearish crypto market conditions. The 2022 bear market drove down the value of Ethereum and all assets on its network, excluding stablecoins. As such, Uniswap's overall liquidity quickly dwindled from roughly $9 billion to $3.35 billion. When crypto assets lose value, their "value" across trading pairs and liquidity provider positions goes downhill too.

Despite the bearish conditions, 2022 was a good year for Uniswap. The network expanded to become a cross-chain DEX. Its primary liquidity source remains Ethereum, but there is also an inflow of trading from Polygon, Arbitrum, Optimism, and Celo. A sixth supported network will be added soon in Boba Network. Uniswap's community has chosen the multi-chain Layer-2 scaling solution as the next frontier. Boba Network is a smart contract platform with Web3-Web2 interoperability, low fees, and fast transactions.

With over 51 million votes in favor of the expansion, the move will conclude over the next few weeks. Deploying Uniswap v3 on Boba Network helps the DEX take advantage of optimistic rollup technology. Moreover, it may push Uniswap's TVL back above $4.5 billion, assuming there is sufficient interest from Boba Network participants. Boba has deployed multichain support for Avalanche, BNB Chain, Moonbeam, and Fantom, paving the way for future Uniswap expansion plans.

Another Big Move for Boba Network

The expansion of Uniswap to Boba Network is the latest development in the project's ongoing DeFi growth. Boba is also home to SushiSwap, OolongSwap, and Gin Finance. As such, the competition will heat up among decentralized exchanges exploring the Layer-2 network. Boba has over 20 active decentralized finance protocols and services on the network, combining for over $4.5 million in Total Value Locked (TVL).

Enya Labs is a core contributor to the Boba Network. Alumni and Stanford faculty members founded it to ensure broader interoperability between web2 and web3, and promote the use of blockchain technology to build decentralized networks. Enya Labs co-founder and CEO Alan Chiu adds:

“Boba Network’s Hybrid Compute will make it possible for ecosystem developers to build a new generation of hybrid on-chain/off-chain DeFi applications atop of Uniswap. While the Uniswap protocol will remain permissionless, developers will be able to build a compliant layer atop of it that leverages Hybrid Compute to tap existing, TradFi-friendly KYC/AML services. As a result, Uniswap will become more accessible to the larger institutional market.”

Deploying on Boba Network enables Uniswap to tap into crucial Asian markets across South Korea and Japan. In addition, the deployment helps strengthen Boba's gaming infrastructure by facilitating token transfers. There is also a $1 million commitment by the Boba Foundation to foster the adoption of Uniswap V3 on the network.