Uniswap’s Integration with Moonbeam: Benefits and Challenges for the Decentralized Exchange

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The popular Uniswap crypto exchange is set to become available on Moonbeam (GLMR), a parachain of Polkadot (DOT), following a May 17 approved proposal put forth by educational group Blockchain at Michigan. The decision was met with near unanimous support, and the integration promises to increase volume and liquidity across the ecosystem.

The smart contracts required for the exchange have already been deployed to Moonbeam, and the only tasks remaining are the “front-end integration updates and including Moonbeam to the auto router,” as stated in the proposal. However, the initial liquidity on the exchange may be low due to today’s turbulent market conditions. As a result, promises of liquidity bootstrapping have been temporarily excised.

In pursuit of a solution, Blockchain at Michigan is exploring the idea of applying for a Moonbeam grant to provide liquidity as soon as possible, possibly on behalf of Uniswap’s decentralized autonomous organization (DAO). Such a move would lead to funds being held by Uniswap’s DAO, showing commitment to the decentralized nature of the exchange.

In an announcement from Polkadot developer Parity Technologies, business development executive Omar Elassar discussed how the integration would benefit Uniswap users in terms of speed and security. He claims that Polkadot’s interconnected web of blockchain networks, or “parachains,” would open possibilities for high performance, scalability, security, and interoperability – all of which are essential for Uniswap’s continued growth and success.

The Moonbeam parachain, in particular, aims to provide a developer environment similar to Ethereum, making it simpler for developers to port their Ethereum apps to the Polkadot ecosystem. This is a critical advantage for Uniswap, as it originated on the Ethereum network but has been expanding aggressively to other networks in recent months.

Uniswap is currently the largest decentralized exchange (DEX) globally in terms of trading volume, performing over $480 million in trades daily, according to CoinMarketCap. Besides the upcoming integration with Moonbeam, Uniswap has also launched a BNB Chain version on March 15 and deployed to Polygon zkEVm on April 14. Additionally, an iOS mobile app was developed on April 14 to facilitate onboarding more users to the platform.

Thus, while the initial liquidity on Uniswap’s new platform might be low, the potential benefits of increased speed, security, and interoperability make this move essential for the future of the crypto exchange. As Uniswap ventures further into the Polkadot ecosystem, users and developers can expect to see more innovation

Source: Cointelegraph

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