Uniswap: launch of layer 2 port to curb rising gas costs
- Launch of Layer 2 Uniswap port for 55 times more savings.
- Optimistic rollup side chains used to increase throughput.
- Uniswap TVL is at a record high while UNI’s share price climbs to 23%.
A Uniswap exchange port has been launched, not to absorb liquidity like its predecessors, but to provide scale-up solutions for faster and cheaper token transactions and exchanges.
Offchain Labs, Bitcoin Benefit scale-up solutions provider, has announced its own Uniswap port called Arbiswap, which provides Layer 2 (L2) scale-up solutions for the world’s most popular decentralized exchange.
In mid-October, the company announced the first and only full EVM-compatible Optimistic Rollup called Arbitrum. After an initial testing period, it has now deployed this scaling technology on its new Uniswap port.
We were looking forward to testing Uniswap on layer 2.
So we built it on Arbitrum Rollup.
This is 🦄Arbiswap🦄
A cheaper Uniswap
The scaling technology used is an optimistic rollup that essentially works by moving out-of-chain transactions onto an L2 sidechain that is secured by the main network. This results in a much faster throughput because some of the work is done outside the main chain. The increase in speed leads to cost reductions and therefore Arbiswap offers a saving of 55x.
By way of comparison, token exchanges on Uniswap Layer 1 cost around 110,000 gases, or 10 million gases per block and approximately one block every 13 seconds. This is equivalent to about 7 exchanges per second with Ethereum’s L1, and transaction costs continue to rise due to high demand.
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Arbiswap’s rollup chain can reduce the cost to 1,965 gases per exchange, which means it can handle up to 390 exchanges per second, the blog added.
He went on to say that the next testnet version of Arbitrum will include additional compression and gas-saving features from ETH;
This is not a proof of concept, or anything like Uniswap. It is a full-featured, fully functional Uniswap V2 roll-up.
A token bridge has been integrated into the user interface, allowing the ERC-20 tokens to be transferred to and from the rollup chain. Arbiswap also works with three different portfolios; Metamask, Fortmatic and Portis.
The demo has been deployed to show how easy it is to run L2 solutions on Uniswap. DEX did something similar with its own L2 protocol demo called Unipig, which was built using Optimistic Rollup in collaboration with Plasma Group and is capable of approximately 250 transactions per second.
The course of the TVL and tokens
Uniswap remains the undisputed leader of TVL DeFi’s charts with 2.8 billion dollars of blocked value, which gives it a market share of 23% according to DeFi Pulse.
The majority of these guarantees are in the four ETH liquidity pools and bring in UNI tokens until 17 November.
However, the price of the UNI token has fallen, as have almost all other DeFi tokens. UNI is currently trading at $2.39, a 23% increase since yesterday’s opening. On the other hand, it is still down 66% from its mid-September peak.