Uniswap Came To Polygon, MATIC Surged As A Result

Uniswap came to Polygon after users voted to deploy the exchange’s smart contracts and as a result, MATIC surged so let’s read more in our latest cryptocurrency news.

Uniswap is one of the most popular decentralized applications on Ethereum and its users voted to put the protocol on Polygon and help lower down the transaction costs. The promise of decentralized finance and blockchain-based tools for lending and trading was that it will open up savings and investment to people that are locked out of the financial system. Uniswap and layer-2 blockchain Polygon will alleviate the pain as they announced today that Uniswap is available on Polygon that has a goal to take some of the strain off.

🗳 The Uniswap community has voted to deploy v3 on @0xPolygon through the governance process.

⚡️ Uniswap Labs will deploy Uniswap v3 contracts within a few days.

👀 Stay tuned. pic.twitter.com/LwVLwEngPl

— Uniswap Labs 🦄 (@Uniswap) December 18, 2021

Uniswap is governed by holders in the native UNI token and it is composed of the exchange’s users so a week ago the users voted to deploy smart contracts from the v3 version of the protocol onto Polygon but the deployment was finalized today. The co-founder Mihailo Bjelic noted:

“With this deployment, Uniswap as the flagship Ethereum project returns back to the original promise and again offers low fees and open access to everyone.”

Polygon has been doing most of the work so far to bring the transaction fees down. The protocol sits on top of Ethereum but it is able to connect to other blockchains as a part of the multi-chain system. Beyond its interoperability, its design promotes scalability by routing ETH transactions via sidechains. This comes with reduced transaction costs and a big bonus for the users of Uniswap where the transactions are made on the blockchain.

The good thing about decentralized exchanges is that you do not have to trust the intermediaries like Coinbase or Binance and take custody of assets to facilitate the trades. The downside is however that you are on the hook for the network transaction fees. According to BitInfoCharts, the average transaction fees on ETH haven’t gone below $20 since October. The deployment has been very good news for MATIC holders as they are tokens that can be used to place votes on the governance issues as well as to pay the transaction fees. The price of the token surged 35% in the past week and about 14% over the past day and set a record high of $2.66 in the process.