UNI and MATIC Pump after Uniswap V3 Deployed on the Ethereum Scaling Solution Polygon

UNI and MATIC Pump after Uniswap V3 Deployed on the Ethereum Scaling Solution Polygon

In his proposal, Polygon co-founder Mihailo Bjelic said they would commit up to $20 million to incentivize Uniswap adoption.

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.

Author: Shantun Parmar

Leave a Reply

Your email address will not be published.