The approval of the proposal to deploy Uniswap v3 on BNB Chain leads to a major showdown with PancakeSwap and a number of competing DEXs.
Super heavyweight DEX is coming to the BNB chain
Let the battle of DEXes on BNB Chain begin! The Uniswap community has officially approved a proposal to deploy Uniswap v3 on the BNB chain, initiating a massive showdown with the chain’s long-dominant Decentralized Exchange (DEX) PancakeSwap, as well as other competitors new and old.
Source: Uniswap
When voting ended at 13:53 UTC on Feb 10, more than 66% of the $UNI ballots were cast in favor of the 0xPlasma Labs proposal.
As is typical of political processes, the sausage making by the Uniswap DAO was not quite pretty, as the choice of Wormhole as the cross-chain bridge between Ethereum and BNB Chain left major $UNI holder a16z (a supporter of rival bridge LayerZero) ) to throw all of its 15 million UNI tokens against the proposal.
The introduction of outsized influence by a special interest group raised brows and frowns from the decentralization-loving crypto crowd.
But in the end, a16z’s size wasn’t big enough, although his votes accounted for about half of the “no” votes on the proposal.
Uniswap supremacy
The launch of Uniswap v3 at BNB Chain is obviously a big deal. As BSC News noted in a previous story, when it expanded to Polygon and basically took over the market share of the native protocol Quickswap (like PancakeSwap, based on a fork from a previous version), the DEX rose to a dominant position almost immediately due to its greater capital efficiency from Uniswap).
In fact, according to DefiLlama, on all five chains on which Uniswap v3 has been deployed – Ethereum, Polygon, Optimism, Arbitrum and Celo – it is the dominant DEX on this chain in terms of trading volume.
(Most recently, Uniswap v3 took the top spot at Celo in terms of 7-day trading volume, beating out Ubeswap, which is, yes, based on a fork of Uniswap.)
Battle of the DEXes on BNB Chain
Does the entry of Uniswap cause problems for PancakeSwap? Will the chefs prevail as they introduced major upgrades to the DEX and even expanded to other chains like Ethereum and Aptos?
Even if Uniswap v3 is able to offer users more efficient trades compared to PancakeSwap, will that matter to users on a blockchain with such low transaction costs that gas fees are mostly an afterthought?
And of course it would not be wise to sleep on the lineup of up-and-coming challengers including Trader Joe, Wombat Exchange, Baby Doge Swap and Thena, or BNB chain veterans like BiSwap and DODO.
Regardless of which protocols emerge victorious from the battle of DEXes, the increased competition is a win for DeFi users and the BNB chain itself.
What is Uniswap:
Launched in November 2018, Uniswap has grown to become the largest decentralized exchange in its class. It was developed open-source on the Ethereum blockchain and uses the AMM model to facilitate Ethereum ERC-20 token swaps. Uniswap
Much of the progress made in Ethereum-based DeFi expansion can be attributed to Uniswap, as it provided the market-making utility for Web3 apps to function in a decentralized environment. The platform consistently sees over half a billion dollars in daily trading volumes and has over $3 billion in total locked volume (TVL). The platform has traded over $1 trillion with over 129 million transactions since launch.
Where to find Uniswap:
Website | Twitter | discord |
What is PancakeSwap:
PancakeSwap is a decentralized exchange (DEX) built on top of the BNB chain. It offers users various features like Liquidity Pools, Swaps, Yield Farming, Syrup Pools, Automated Market Maker, Initial Farm Offering (IFO), NFT Profile System and many others.
Additionally, the protocol helps users get the most out of their crypto assets by trading, earning through yield farming, and winning through lottery, prediction, and NFT collectibles. With the highest trading volume in the market, PancakeSwap is the leading DEX on the BNB chain.
Where to find PancakeSwap:
Website | Twitter | Medium | GitHub
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