Uniswap transactions are conducted on Ethereum. This means that there is a high cost of transaction, which has been reported over the past few months. It is expected that the new solution will reduce costs for its users.
ETH traded at USD 1,899 at 7:43 UTC. It had dropped 6.5% over the previous day. The last week, it also dropped 18%. UNI fell even further in a single trading day, dropping 12% to USD 17.17. It is also down 23% over a week.
This announcement comes just as Uniswap announces the Alpha launch for its third iteration of Uniswap v3, via the OKs mainnet.
“Everyone can now deposit, trade, and provide liquidity using Uniswap V3 starting today,” Optimism wrote in a post. The team also stated that this does not mean it is time to get in on the action, but that they have put in clear safeguards to stop usage from spiraling out of control.
They warned that there would be unplanned and planned downtime.
Uniswap allows users to use OKs by depositing L1 assets into L2 and then switching their wallets to allow them to interact with OKs. Layer 1 (L1) refers to the Ethereum blockchain’s base protocol, while Layer 2 (L2) refers to any protocol that is built on top.
The new token bridging system supports new L1 assets in L2, and at launch supports DAI , wrapped Bitcoin (WBTC), , Tether (USDT),, tether EUR(EURT) , and synthetix token (SNX). An interface for adding assets will follow “soon.”
This suite of infrastructure integrations includes Matamask and Etherscan as well as Coinbase Wallet and Imtoken Wallet.
According to Uniswap OKs will be able to support a maximum throughput of 0.6 transactions per seconds (tps) during the Alpha period. Given that Uniswap v3 currently is one of the few protocols available to OKs, this should translate into transaction capacity roughly in line L1″, they stated, adding that transactions on OKs are instantaneous, unlike L1.
Optimism announced that they have also officially imposed fees on Optimistic Ether. They chose a conservative target of 50,000 transactions daily at launch and targeted an EIP1559-like congestion pricing system. This will be increased over time.
Uniswap stated that OKs can offer up to 10x transaction costs savings if Uniswap v3 has equal usage to L1.
They claimed that additional demand will push gas prices higher while transaction speeds will increase over the next few months as the OKs infrastructure is optimized and tested at scale. They stated that the ultimate goal is to scale to meet high-speed, low-cost DEX trading demand.
Uniswap’s launch has made it clear that the Optimism teams are now focused on the following priorities:
– Validating system stability, and bug fixes
– As stability is regained, the tps constraint can be increased.
– Preparing Optimistic Ethereum to be open-sourced.
Uniswap stated that Optimism’s roadmap promised further improvements, including additional scaling and smart wallet externally owned accounts. (No need for approvals and gas can be paid with any token).
reported that Optimism was an L2 scaling solution. It aims to reduce the Ethereum mainnet’s burden from the large number of transactions it processes. It relies on optimistic rollups to reduce fees and latency as well as increase throughput over Ethereum L1. It was previously estimated that it would be launched this month.