Uniswap Unveils Plans to Launch L2 Network Unichain

Uniswap, an Ethereum-based decentralized exchange, has announced plans to launch its own layer 2 blockchain. Termed Unichain, the sidechain aims to enhance the Ethereum network’s setbacks.

Per a tweet on Thursday, Unichain will provide users with faster transactional settlement speeds, cross-operability, enhanced liquidity, and reduced transaction costs. Uniswap Labs, the foundation behind the Uniswap exchange, noted it would launch Unichain’s testnet today and release its mainnet later this year.

Uniswap Joins the L2 Bandwagon

With the Thursday announcement, Uniswap became the latest exchange to launch a network. Notably, Coinbase and OKX have also ventured into the sector, with the former releasing the Base network, a popular Ethereum sidechain.

Uniswap Lab revealed it developed the protocol by building on the Optimism Superchain, the same open-sourced code that Base was built on. 

Furthermore, the foundation behind the largest DEX in the sector stated that transactions will be instant on the L2 scalability solution. It noted that Unichain will launch with a second block time and will scale to 200-250 millisecond sub-block time with subsequent upgrades.

Costwise, Uniswap Labs noted that the L2 network will be 95% cheaper than the Ethereum mainnet. The Ethereum mainnet is popularly known for its outrageous transaction fees, especially when on-chain activities ramp up.

Also, the network has historically seen mouthwatering gas fees paid on transactions. For context, a user paid 288 ETH ($700,000) to transfer absolutely nothing on October 8.

Unichain, A Ploy to Advance Ethereum’s Roadmap

Reacting to the development, Uniswap Lab’s CEO Hayden Adams insisted that the ploy was a strategic move to advance Ethereum’s roadmap.

“After years of building and scaling DeFi products, we’ve seen where blockchains need improvement and what’s required to continue advancing Ethereum’s roadmap. Unichain will deliver the speed and cost savings already enabled by L2s, but with better access to liquidity across chains and more decentralization,” Adams stated.

Adams further asserted that Unichain will be Ethereum’s liquidity and DeFi hub. According to him, the L2 network will debut products and user experiences not seen on other chains.

Meanwhile, Uniswap’s native token UNI bounced on the disclosure, defying a broader market downturn. At the time of writing, UNI is up 12% in the past 24 hours, trading at $8.25.