[WATCH] Uniswap V3 Launches on Optimistic Ethereum Offering Up to 10x Transaction Cost Savings

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Uniswap has announced that its version 3 is now available on Optimistic Ethereum.

Optimistic Ethereum is a layer 2 sidechain where developers can move their smart contracts from Ethereum to benefit from faster computation times.

However this upgrade is not a full release and its still undergoing testing.

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Speaking about the launch on its blog, UniSwap said:

“Today’s launch marks the first step in the journey for DeFi applications to rival and surpass traditional web user experiences.

Optimism’s roadmap promises further powerful improvements including additional scaling, smart wallet EOAs (no ”approves”, pay gas in any token), and decentralization of the transaction sequencing operation.”

                                – UniSwap

Gas expenses and slow transactions on Ethereum are a recurring challenge for users looking to exploit decentralized apps. Sometimes the fee related to a transaction can be greater than the transaction itself.

Several solutions have been introduced to address this problem.

Some solutions, such as sharding, involve adjusting the main ethereum chain while others are off-chain. Off-chain solutions are generally referred to as “layer 2 Scaling.”

Optimistic Ethereum is a layer 2 scaling solution that lets Ethereum developers migrate their smart contracts onto the Optimistic Virtual Machine without them breaking. The actual scaling platform is referred to as Optimism and uses rollup technique.

A rollup is a sidechain aggregation of transactions in a smart contract that will settle to the main chain at some point in the future. It is referred to as roll-up because it bundles many transaction to be committed to the mainchain.

According to Ethereum.org:

“Rollups perform transaction execution outside layer 1 and then the data is posted to layer 1 where consensus is reached. As transaction data is included in layer 1 blocks, this allows rollups to be secured by native Ethereum security.

Optimistic rollups sit in parallel to the main Ethereum chain on layer 2. They can offer improvements in scalability because they don’t do any computation by default. Instead, after a transaction they propose the new state to mainnet, or “notarise” the transaction.”

                                 – Ethereum.org

Some of the advantages that Uniswap users can benefit from this move include:

  • Speed with security
  • Gas costs on optimism are 35 times cheaper than on Ethereum
  • Optimistic rollups publish state changes to the main chain with minimal inspection and fraud checking, allowing for additional speed
  • Uniswap estimates that, based on usage stats on the main chain, Optimistic Ethereum will offer up to 10x cost savings

Uniswap says developers can move their assets to the Optimistic Ethereum Network using the Optimism Gateway.

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RECOMMENDED READING: Approximately 90% of All On-Chain Activity on Ethereum was from UniSwap, May 2021 Dapp Report Reveals

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