Uniswap Labs, the developer team behind the decentralized exchange protocol Uniswap, is in the process of integrating the BNB Chain following the passage of a proposal shared by a community member a month ago.
In December 2022, Ilia Maksimenka, CEO of the decentralized firm 0xPlasma Labs, released a proposal showing the benefits that can sprout from the deployment of Uniswap V3 in the BNB Chain.
Mass Support for BNB Chain Integration
On January 17, 2023, 0xPlasma conducted a preliminary check (known as Temperature Check within the Uniswap community) to see if members supported the arrangement. This check was carried out through voting. Community members were urged to vote “YES” or “NO” to the proposal.
According to Devin Walsh, Executive Director of the Uniswap Foundation, the proposal needed a minimum of 10 million YES from voters to make it to the final governance proposal stage.
The voting process lasted for five days, starting from January 17. On January 22, the voting process for the proposal ended with 20 million UNI votes showing support for the move. Meanwhile, nearly five million votes opposed deploying Uniswap V3 on the BNB Chain.
Shortly after the voting process was finalized, the 0xPlasma Labs team published a tweet showing that the temperature check was in their favor. The team added that the voting session was the largest ever conducted in the history of Uniswap governance.
Benefits of BNB Chain
In his extensive proposal, Maksimenka stated several benefits that can bolster the Uniswap community should the project get deployed on BNB Chain.
Binance, the company behind BNB Chain, has a large user base of 120 million. The 0xPlasma boss believes Uniswap can tap into Binance’s large user base and grow by one or two million additional users. Currently, Uniswap controls an audience of around 4.5 million.
The integration is also expected to grow the total value locked (TVL) in Uniswap. The project reveals that it currently has a TVL of $3.65 billion. In the breakdown, most of the assets, $3.41 billion, are stored on the Ethereum network. The rest of the assets live on four other blockchains – Polygon, Arbitrum, Optimism, and Celo.
Maksimenka mentioned in his proposal that integrating the BNB Chain will enable the decentralized project to garner up to $1 billion in TVL. He also stated that BNB Chain would benefit from the integration as well.
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