Majority Favour BNB Chain Over DEX
As many as 80% of UNI token holders voted in favour of a ‘temperature check’ to gauge support in the Uniswap community for a possible move of the decentralised exchange’s V3 protocol to BNB Chain.
Voting on Plasma Labs’ proposal ended on January 22nd, with approximately 20 million tokens cast in favour of the move.
Uniswap, like other decentralised exchanges (DEXs), uses smart contracts to match trades and provide liquidity among traders. It has over $3.4 billion in various tokens locked up across five blockchains, with V3, the most recent iteration, commanding $2.6 billion of that total.
BNB Chain, a blockchain closely linked to the centralised crypto exchange Binance, has a large and growing user base, providing a potential new market, as well as high transaction speeds and low fees, making it a suitable platform for Uniswap’s DEX services, according to Plasma.
“Deploying to BNB Chain could help Uniswap tap into the growing popularity of DeFi in the Binance ecosystem,” the proposal’s developers wrote. “BNB Chain has unique features like staking and cross-chain support that could improve the functionality of Uniswap v3.”
Among other advantages, Plasma stated that switching to BNB Chain could bring in at least $1 billion in additional liquidity from the BNB Chain ecosystem, as well as “1-2 million new users.”
Plasma is expected to float a final proposal outlining the move in the coming weeks.
(With inputs from Shikha Singh)
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