Increasing adoption along with a burst in DeFi activity has led to cryptocurrency transactions being at an all-time high. This has inadvertently resulted in the congestion of the most popular network, Ethereum. This has in turn led to the rise of layer-2 scalability solutions such as Polygon that offer lower transaction time and cost.
Naturally, cryptocurrency exchanges are also integrating with these protocols on the back of both user demand and personal growth. While this includes top decentralized exchanges (DEXs) such as Sushiswap and Aave, Uniswap is yet to deploy Polygon on its network. The L2 solution’s team has now published a proposal on Uniswap’s Governance Forum to deploy Uniswap protocol to Polygon.
Scalability solutions lighten the load taken by Ethereum’s mainnet, thus offering cheaper and faster transactions. Polygon currently has around $4.77 billion locked in its protocol, making it “the second strongest DeFi ecosystem, right after Ethereum L1”, according to the proposal.
The proposal also noted that Polygon’s huge growth over the past year has materialized into partnerships with top Ethereum L1s like Aave, Curve, and Sushiswap along with numerous smaller DeFi projects. It further noted that Polygon’s DeFi eco-system is “self-sustainable” as it had stopped all liquidity mining incentives some time ago. Yet, “we keep seeing capital and user inflow and very high user retention”, it added.
The proposal also outlined the benefits Uniswap could have through this deployment, including growth in user base, such…