UNI jumps 11% as Uniswap debuts its own layer-2 solution Unichain

Decentralized exchange Uniswap has entered the layer-2 solution landscape with its new initiative to “accelerate Ethereum’s scaling roadmap.”

Uniswap, one of the largest decentralized exchanges by trading volume, has unveiled Unichain, a new open-source Ethereum-based layer-2 network designed to enhance transaction speed, reduce costs, and improve liquidity across decentralized finance.

In a press release shared with crypto.news on Oct. 10, Uniswap Labs stated that the product, powered by the Optimism Superchain, seeks to address the scalability challenges that have hindered Ethereum’s broader adoption.

“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.”

Hayden Adams, Uniswap Labs CEO

Adams added that Unichain will deliver the speed and cost savings already enabled by other rivals in the layer-2 space “but with better access to liquidity across chains and more decentralization.”

Uniswap to launch Unichain mainnet later in 2024

According to the network’s technical description, Unichain will initially feature one-second block times, with ambitions to optimize to 200-250 milliseconds, although a timeline for this enhancement remains unclear.

Additionally, Unichain aims to focus on cross-chain interoperability, facilitating liquidity access across various layer-2 networks on Optimism and beyond. It also plans to implement the proposed ERC-7683 standard for improved transaction support across all blockchains.

With the private testnet now live and a public mainnet launch on the horizon, it remains uncertain whether Uniswap Labs will introduce a separate token for the network. Following this announcement, the price of (UNI) surged by 11%, reaching $8.05.