Unichain by Uniswap: New Blockchain Network and Its Market Impact

by Giorgi Kostiuk

a year ago

Uniswap has introduced Unichain, a new blockchain network that could significantly boost profits for Uniswap Labs and its token holders.

Impact of Unichain on Uniswap Labs and Token Holders

With the launch of Unichain, $368 million previously paid to Ethereum validators can now be directly redistributed to Uniswap Labs and Uniswap tokenholders. DeFi Report founder Michael Nadeau claims that Uniswap Labs can also capture all Maximum Extractable Value on Unichain since it owns all of the network's validators.

MEV is estimated to be about 10% of total fees paid on Uniswap ($100m over the last year). They will have the option to share some of this with token holders as well.Michael Nadeau

Implications for the Ethereum Ecosystem

Nadeau also stated that Ethereum validators and ETH token holders would be the most affected following the Unichain launch, with less burned ETH and fewer fees returning to the blockchain.

Reactions to Unichain Launch

Uniswap, the largest decentralized exchange by volume, launched Unichain on October 10, promising faster and cheaper transactions. However, the launch was met with mixed reactions. While many claim that it will improve the DeFi user experience, some skeptics, including Vitalik Buterin, criticized it.

Uniswap’s main value proposition is that you can just go and get a trade done in 30 seconds without thinking about it. A Uniswap chain or even rollup makes no sense in that context.Vitalik Buterin

The launch of Uniswap's Unichain could significantly impact token holders and the Ethereum ecosystem, but reactions remain mixed.

Rewards

More rewards

Discover enhanced rewards on our social media.

Other news

Market Conditions and Developments Affecting XRP's Outlook

Ongoing developments, including a decline in XRP supply on exchanges and evolving regulatory conditions, may impact the accuracy of Google Gemini's projection.

Filippo Romano20 minutes ago

Canary Capital CEO Critiques Zcash and Promotes Litecoin

Steven McClurg, CEO of Canary Capital, critiques Zcash's price surge as a 'pump and dump' and promotes Litecoin for its compliance features.

Emily Carter27 minutes ago

Digital Asset Treasuries Lead Crypto Stock Recovery

Digital asset treasuries, particularly Ether DATs, have shown significant recovery in the stock market following a leverage flush at the beginning of the month.