Uniswap Labs, the creator of the decentralized exchange, Uniswap, announced the launch of its Layer-2 blockchain, Unichain. The developers claim the innovation will tackle the limitations of Ethereum.
Why Unichain?
While Ethereum features decentralization as the key element of DeFi, it has limited affordability. Uniswap Labs claims Unichain will address this by shifting execution to Layer-2, lowering transaction costs by 95%
Uniswap Labs further brags that its new Layer-2 will execute near-instant transactions. It stated that at launch, Unichain will feature 1-second block times, and will later be upgraded to feature 250 milliseconds “sub-blocks” for seamless user experiences. The blockchain developer claims this innovation will enhance user experience and improve market efficiency.
The Uniswap operators acknowledged that the presence of other Layer-2 solutions has resulted in poor liquidity. With the ERC-7683 standard and partnership with OP Labs as part of the Optimism Superchain, Unichain will be interoperable, allowing users to access cross-chain liquidity without worrying about which chain they are on.
Uniswap Labs Invites Testers
The decentralized exchange creator announced that Unichain’s testnet is now live, and the mainnet will be launched later this year. The team invites the crypto community to experience Unichain by interacting and completing test transactions.
Developers who wish to deploy on the new layer-2 can start building on it by using the Unichain Builder Toolkit, a suite of resources. To incentivize on-chain activity, the Uniswap Foundation will support developer engagement through grants, hoping this will foster innovation and growth within the Unichain ecosystem.
Unichain Launches Amidst Regulatory Uncertainty
It is worth noting that the new layer-2 comes at a time Uniswap Labs, received a Wells notice from the Securities and Exchange Commission (SEC) warning of potential legal action for alleged securities law violations.
In response, the DEX operator filed a 40-page document arguing against the SEC’s claims. It noted that Uniswap’s decentralized nature and autonomous protocol distinguish it from traditional securities exchanges or brokers and that it is prepared to fight the regulator’s claims.
Meanwhile, UNI, Uniswap’s native token experienced a price increase of over 3.4% after the announcement and traded at $8.39 at the time of writing despite the price decline in the crypto market.
