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What Happens After Uniswap DAO Approves BNB Migration?

  • According to current cryptocurrency news, the long-debated BNB Chain deployment vote for the Uniswap DAO's V3 release has been accomplished.

  • ConsenSys, which makes Ethereum software, and Robert Leshner, who invented Compound Finance, supported the resolution.

11-Feb-2023 By: Simran Mishra
What Happens After U

The much-debated BNB Chain deployment vote

 for the Uniswap DAO's V3 release has finally been completed, according to the most recent cryptocurrency news.

The final vote for the Uniswap v3 deployment on the BNB Chain was recently completed by the Decentralized Autonomous Organization (DAO) of Uniswap. Almost 66% of DAO delegates voted in favour of the amendment, which was approved on Friday, according to the webpage that counted the results for the referendum.

Voting is finished at Uniswap DAO

Delegates with considerable voting power, such as ConsenSys, the company that creates the Ethereum software, and Robert Leshner, the inventor of Compound Finance, cast votes in favour of the resolution. During this time, the top venture capital company Andreessen Horowitz used a total of 15 million ballots to vote against the motion.

This particular decision has prompted a significant discussion about the governance process for the implementation of cross-chain applications. Many delegates expressed their resistance to pushing through with the deployment with Wormhole as the only choice for the "bridge provider," including those who sell bridges. The process of sending cryptographic tokens between compatible networks uses a method known as a bridge provider. However, they demanded an alternative approach that was unrelated to any one bridge. For their side, Andreessen Horowitz said that LayerZero should defeat Wormhole as the obvious winner of the competition.

What Will Uniswap Do Next?

Plasma Labs will look into the possibilities of putting Uniswap version 3 on the BNB Chain as soon as feasible when the vote is over. After the governance procedure has successfully finished a brief waiting period, this execution may happen. Plasma Labs' material in its proposal indicates that Uniswap may seek to take up to half of PancakeSwap's market share. PancakeSwap is one of the most significant decentralised exchanges on the BNB Chain, and according to DeFiLlama, the platform is now in charge of a TVL with a value of $2.4 billion.

The imminent deployment on the BNB Chain is a problem that cannot be disregarded, according to crypto news about Uniswap's recent proposal. This is because on April 1 of this year, Uniswap's commercial licence for its v3 version will expire. It won't be possible for other platforms to create comparable protocols because of the licencing.

The new concept of several pools for each pair of tokens in UniSwap Version 3 is included, with each pool imposing a separate exchange charge. In the previous, every distinct pair of tokens was associated with a single liquidity pool, and all swaps were subject to a default fee of 0.3% of the value of the cryptocurrencies being swapped. Even though this method has in the past proven effective, it is likely set at a level that is too low for pools that trade in extremely volatile coins and too high for pools that trade in reasonably stable cryptocurrencies.

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