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Uniswap, one of the largest projects in decentralized finance (DeFi), has announced the release of two new chains, namely Moonbeam Network and Gnosis Chain. The launch of the two chains is expected to intensify DeFi activities within Uniswap and cement its position in the decentralized sphere.
Uniswap launches Gnosis Chain and Moonbeam
The Uniswap community engaged in a vote last week. The process required that governance token holders vote unanimously to launch the Uniswap DEX on the Moonbeam network and Gnosis Chain.
The votes for these two proposals passed with nearly the same results. 99.99% of the cast votes supported the launch on each blockchain. 50.7 million UNI supported the launch of Moonbeam, while 46.1 million UNI were in favour of Gnosis Chain. The votes against the release of the two chains were 0.01%, equivalent to 3080 UNI.
The vote attracted participation from some of the leading players in the crypto space and the Ethereum network, including the Ethereum development company, ConsenSys, the director of partnerships at Crypto.Com, Kenneth Ng, and university blockchain programs such as Blockchain at Michigan and Blockchain at Columbia.
The final votes for the event will end on May 19 and May 20 after two earlier votes were conducted, including a consensus check and a temperature check. The actual launch for these two chains will happen in the coming weeks.
Growing the ecosystem
The move to build on every blockchain will allow Uniswap to expand its reach in the massive DeFi sector. Uniswap ranks as one of the top decentralized exchanges (DEXs), and it has witnessed a notable rise in demand following the growing popularity of the DeFi ecosystem.
Gnosis Chain is compatible with the Ethereum Virtual Machine (EVM), and it has been designed to conduct fast and cheap transactions. Through Gnosis Chain, a $10 million fund will be given to support a liquidity mining program on the Uniswap platform.
On the other hand, the Moonbeam Network is a blockchain that links the Ethereum and Polkadot networks. The proposal for the Moonbeam launch was submitted by Nomad.xyz and Blockchain at Berkeley. Nomad has committed $2.5 million to the Uniswap Grants program.
Gnosis Chain and Moonbeam are not the only blockchains supported by Uniswap. The protocol also supports four other chains, including Ethereum, Polygon, Optimism and Arbitrum.
The majority of Uniswap activities happen within the Ethereum network. The growing popularity of the Uniswap protocol hints at it being a valuable addition to any blockchain network that might seek its support.
Uniswap has become one of the most popular projects in the DeFi space. The protocol has $7.05 billion in total value locked (TVL). This makes it rank the third-largest DeFi platform in the market.
The addition of these two chains has not done anything to aid in UNI’s price recovery. During the past 24 hours, data from CoinGecko shows that the token has dropped by 6.1% during the past 24 hours. The dip follows a heightened recession across the cryptocurrency market. During the past 24 hours, Bitcoin’s price has dropped below $30K, also pulling back other tokens.
UNI’s current price is 88.2% below its all-time high of $44.92, created in May last year. The token was among those that failed to surge in October last year despite the entire market being on an uptrend. However, these two chains could change the adoption of Uniswap, and the UNI token could register an uptrend soon.
The collapse of Terra LUNA and Terra USD (UST) crashed the entire market, with DeFi protocols taking a massive hit. However, these protocols are now showing signs of recovery despite Terra’s failure to recover.
To learn more visit our Investing in Moonbeam guide.
Ali is a freelance writer covering the cryptocurrency markets and the blockchain industry. He has 8 years of experience writing about cryptocurrencies, technology, and trading. His work can be found in various high-profile investment sites including CCN, Capital.com, Bitcoinist, and NewsBTC.