Binance, the world’s biggest cryptocurrency exchange, created the decentralized EVM-compatible smart contract blockchain known as BNB Chain, on which the Uniswap decentralized exchange protocol has gone live. This decision follows complex governance debates in February to settle on a bridging solution after a successful deployment proposal on BNB Chain.
Due to this development, Uniswap Protocol token trading and swapping may now take advantage of BNB Chain’s cheaper transaction costs than Ethereum’s.
For protocols that want to expand their user base, BNB Chain’s accessibility, scalability, and active community make it an ideal starting point “Alvin Kan, BNB Chain’s director of growth, remarked. “To witness Uniswap’s dedication to its consumers and decentralized innovation in the future gives us great hope.
Initially, 0x Plasma Labs predicted that Uniswap would be able to take up to 50% of the market share now held by PancakeSwap. With $2.5 billion in locked volume, PancakeSwap is the most popular decentralized exchange on BNB Chain.
Implementing Uniswap on BNB Chain significantly improves the platform’s accessibility and liquidity, allowing it to compete for a more significant piece of the decentralized exchange niche.
In a heated governance vote, the Ethereum mainnet to BNB Chain connection provider Wormhole was selected as the protocol’s official bridge. This vote pitted two of the industry’s most prominent venture capital companies against one another, Andreessen Horowitz and Jump Crypto. The venture capital company A16z used its significant stake in UNI to veto the selection of Wormhole.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.