Leading decentralized exchange Uniswap V3 has been deployed on the Ethereum scaling system Polygon mainnet.
This comes after UNI holders voted to pass a governance proposal for Uniswap v3’s deployment to Polygon. More than 72 million UNI token holders (98.8%) supported the move.
With this deployment, the idea is to bring Polygon’s low fees to Uniswap as increased usage of Ethereum has made the second-largest network very expensive resulting in the pricing out of small users. But now, Uniswap users can swap tokens using the Polygon blockchain.
Polygon co-founder Mihailo Bjelic submitted the proposal on the Uniswap governance forum last month. In his proposal, Bjelic also said that the project would be willing to commit up to $20 million to incentivize Uniswap adoption; $15 mn will be used for a long-term liquidity mining campaign, and $5 mln will go towards the overall adoption of Uniswap on Polygon.
In response, Polygon’s $2.3 billion market cap cryptocurrency MATIC rallied to hit a new all-time high at $2.70 on Wednesday. As of writing, MATIC is trading at $2.53, down 6.2% from its ATH but up 14042% YTD.
UNI also enjoyed a spike in price to now trade at $17, but much like the broad decentralized finance (DeFi) sector, the governance token is down over 62% from its all-time high earlier this year.
This is despite the fact that Uniswap continues to dominate the DEX space, accounting for about 76% of the market share, as per Dune Analytics.
As for the DeFi space, Uniswap has nearly $9 bln of total value locked in it. This TVL reached $10.5 bln at the beginning of the year. Polygon’s DeFi ecosystem meanwhile has $5.27 bln in TVL, about halved from $10.5 bln high in mid-June.