One of the promising token of 2021 $MATIC, hit an all-time high on Wednesday after the launch of Uniswap on the polygon network.
Uniswap version 3 contracts were deployed on the Polygon mainnet on Wednesday. Uniswap is one of the popular decentralized exchange. It allows users to swap tokens on the Ethereum blockchain.
Polygon network provides a scaling solution to Ethereum. The gas fee on Ethereum is sky high with increased usage. Therefore, the polygon version of Uniswap intends to change this.
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The changes on the Uniswap blockchain depend on the decision of holders. Deployment of contracts was also brought after UNI token holders approved the deployment proposal via votes.
Polygon’s native token $MATIC hit an all-time high following the deployment. MATIC price spike to $2.72 on coin market cap. UNI token also bagged significant gains following the news.
The co-founder of Polygon network, Mihailo Bjelic had the following things to say about the deployment event while talking to coindesk.
“With the increased usage, fees on Ethereum layer 1 have effectively ‘priced out’ most of the users… With this deployment, Uniswap as the flagship Ethereum application returns back to the original vision and again offers low fees and open access to everyone,”
Uniswap is one of the largest decentralized exchanges by trading volume. Arbitrum and Optimism are two of its companion already deployed with millions of dollars worth of value locked. Around $62.19 million worth of tokens is locked on Arbitrum. Whereas, $36.94 million in value is locked on Uniswap’s Optimism version.
Ethereum’s mainnet version holds the highest value of Uniswap which stands at $8.75 Billion.
The congestion problem of Ethereum network has given the opportunity to platforms like polygon to come with a solution. It provides an alternative to experienced traders who are looking for investment in DeFi ecosystem.