Uniswap has launched the mainnet of the Unichain, a layer 2 blockchain network on Uniswap. Unichain is a great innovation with immense utility such as one-second block time, liquidity swapping, and the ability to earn interest or borrow against collateral. The project had already earned much praise and acceptance among the users after its testnet launch.
This is a huge enhancement to Uniswap Labs and will provide huge revenue for the platform by redirecting the fees that were otherwise due to the Ethereum validators. This announcement has brought back a bullish tint to Uniswap’s native UNI tokens.
Features of Unichain
Unichain is the Ethereum’s first layer 2 blockchain to launch as a Stage 1 Rollup. It showcases a fully functioning, permissionless fault-proof system ensuring the trustless security of the network. As per the official sources, Unichain aims to make Decentralized Finance (DeFi) faster, cheaper, and more decentralized. This is made possible through its permissionless feature.
It is expected to create revolutionary strides in the DeFi space with its high efficiency and unmatched liquidity. Unichain gives better usability for the users through immense cross-chain functionality. Uniswap Labs has temporarily suspended the user fee to boost a higher adoption rate at this early period of Unichain’s development.
How to Set up and Fund a Wallet on Unichain?
To start with the Unichain platform you should first of all set up a suitable wallet. You can download a Uniswap (Uni) from Chrome, IOS, or Android and connect it to the Uniswap website. Additionally, you can also connect with an existing Ethereum wallet by going to the “Add Network” tab on the website.
To fund the wallet, you can bridge the tokens from Ethereum Mainnet on the Uniswap Interface. Connect your wallet and select ETH as the input token on Ethereum Mainnet and the output token on Unichain. You can use the partner interfaces to bridge to Unichain. You can also quickly fund a Unichain Wallet directly with Unichain ETH or Unichain Sepolia ETH by ETH and bridge it directly to the Unichain bridge.
Building on Unichain
You can build on the Ubichain platform through different means. You can deploy a smart contract, deploy an ERC-20 contract, create a pool, or build a subgraph on the Unichain platform. You can make a pool and add the initial liquidity of a token to enable its trade. You can create a dApp to transfer USDC on the Inuchan network. With USDC, you can have frictionless access to a stable store of value, including instant, low-cost payments, and 24/7 capital markets.
How will Unichain Enhance the Uniswap Ecosystem?
The major problems faced by the Uniswap network are fragmented liquidity, lack of quality of execution, and user experience under the expected mark. Unichain removes these drawbacks through two essential innovations: verifiable block building and Unichain validation network.
The verifiable block building speeds up the verification of transactions by splitting up each block into a flash block. This function helps applications allocate some of their maximal extractable value (MEV) for user benefit. On the other hand, the Unichain validation network reduces the risks involved in block sequencing. This will help in the faster settlement of cross-chain transactions and support potential future extensions.
With the trustless revert protection mechanism on the Unichain platform, each user gets protection from having to pay for failed transactions. The blocks are programmed in such a way as to identify and revert any such transactions.
The Bottom Line
Unichain is a blockchain innovation to incentivize Uniswap users through various methods to improve its speed, scalability, and overall efficiency. The system prioritizes blockchain operations and fights against manipulation of order execution and identifying and challenging problematic transactions. The main point is that Unichain contributes to further decentralization of the network. Created by Optimism’s Superchain ecosystem based on OP Stack and managed by the Uniswap Labs, Unichain will surely enhance the Uniswap platform and help users in myriad ways.
