Back to the list

Uniswap v2 Goes Live On Arbitrum, Polygon, Optimism, Base, BSC, and Avalanche

source-logo  coinedition.com 21 February 2024 15:33, UTC

Uniswap, the Smart Contract-based decentralized cryptocurrency exchange (DEX), announced the deployment of its v2 protocol on six new chains. According to a post on X, the deployments would allow users to execute functions directly on those chains through the protocol’s interface. The said chains include Arbitrum, Polygon, Optimism, Base, Binance Smart Chain (BSC), and Avalanche.

You all love v2 so much, we’re bringing it to you everywhere 🪐 pic.twitter.com/OQLrPH0A2z

— Uniswap Labs 🦄 (@Uniswap) February 20, 2024

Explaining the impact of the recent deployment, Unsiwap noted that the fresh development will offer simpler experiences for liquidity pools (LPs) based on users’ requests. The project measured v2’s simplicity against the more complex v3, which offers more advanced capabilities for more active LPs.

Meanwhile, Uniswap highlighted that v2 pools cover the entire price range by default. Hence, it reduces upfront decisions and minimizes the need for active “Liquidity Pooling.” Additionally, Uniswap noted it is cheaper to deploy new pools on v2, due to cost-efficiency in terms of gas fees. Notably, gas costs for adding liquidity tend to be much lower.

Although Uniswap v3 enables users to save on gas when swapping on non-Ethereum chains, doing the same on v2 would be cheaper in comparison, as per Uniswap. Similarly, v2 users will benefit from almost no maximal extractable value (MEV) on Layer-2 networks, a process Uniswap considers helpful for swapping long-term assets.

Likewise, Uniswap highlighted the security benefit of deploying v2 on the listed chains. The exchange noted it would curtail losses incurred via v2 fork exploits, bugs, and rug-pulls. The platform added that the ecosystem reportedly lost over $55 million to such risks in the last year. It emphasized that an official v2 deployment through the Uniswap interface provides a secure and safe place to swap digital assets.

Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.