UNI jumps 11% as Uniswap debuts its own layer-2 solution Unichain

Decentralized exchange Uniswap is making strides in the layer-2 solution space with its latest initiative aimed at “accelerating Ethereum’s scaling roadmap.” As one of the largest decentralized exchanges by trading volume, Uniswap has introduced Unichain, an open-source layer-2 network built on Ethereum. This new platform is designed to enhance transaction speeds, lower costs, and improve liquidity within the decentralized finance ecosystem.

In a press release shared with pinetbox.com on October 10, Uniswap Labs announced that its new product, powered by the Optimism Superchain, aims to tackle the scalability challenges that have impeded Ethereum’s wider adoption. This initiative is part of Uniswap’s commitment to enhancing the Ethereum ecosystem and making decentralized finance more accessible to users.

“After years of building and scaling defi products, we’ve seen where blockchains need improvement and what’s required to continue advancing Ethereum’s roadmap.”

Hayden Adams, Uniswap Labs CEO

Adams further emphasized that Unichain will provide the speed and cost efficiency already offered by competitors in the layer-2 space, but with improved access to liquidity across different chains and a greater degree of decentralization. This approach aims to enhance user experience and foster a more interconnected decentralized finance ecosystem.

Uniswap to launch Unichain mainnet later in 2024

According to the network’s technical description, Unichain will initially offer one-second block times, with plans to optimize this to 200-250 milliseconds, although a specific timeline for this improvement is still unclear.

Unichain will also prioritize cross-chain interoperability, enabling better access to liquidity across various layer-2 networks built on Optimism and beyond. Additionally, it intends to implement the proposed ERC-7683 standard to enhance transaction support across all blockchains.

With the private testnet now active and a public mainnet launch on the horizon, it remains uncertain whether Uniswap Labs will introduce a separate token for the network. Following this announcement, the price of Uniswap (UNI) surged by 11%, reaching $8.05.