Uniswap Unichain Launch Could Shift $368M in Validator Fees from Ethereum to Uniswap Labs
The recently unveiled Layer 2 solution for the Uniswap protocol, Unichain, has the potential to significantly increase Uniswap Labs’ and UNI token holders’ revenue. Uniswap Labs may be able to generate an extra $500 million annually from fees that would have otherwise gone to Ethereum, according to recent reports.
A total of $368 million was earned by Ethereum validators last year through Uniswap protocol activity. However, in a post on the X platform on October 13, Michael Nadeau, the founder of the DeFi Report, asserted that the Unichain launch would directly transfer this sum to Uniswap Labs and the holders of UNI tokens.
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,
TrendingNadeau
Unichain Launch Sparks Debate Over Necessity of New Layer 2 Solutions
Across the five main chains—Ethereum, BNB chain, Optimism, Polygon, and Base—the Uniswap protocol has so far in 2021 earned about $1.3 billion in trading and settlement fees. Uniswap introduced Unichain this week on October 10th, which offers quicker and less expensive transactions along with enhanced compatibility across several blockchain networks. However, opinions on this launch were divided, with some DeFi experts arguing that further Layer 2 wasn’t necessary.
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. A copy of Uniswap on every rollup does,
Vitalik Buterin
However, Unichain’s support asserted that it would provide a more seamless user experience, more focused liquidity, and a reduction in the problems associated with fragmentation across different blockchains.
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