Uniswap, the largest decentralized digital currency trading protocol in the world by trading volume, has announced its official launch on the BNB Chain network, a decentralized blockchain compatible with EVM that was initially founded by the Binance digital trading platform. This announcement follows a successful governance proposal in February to deploy the protocol on the BNB Chain network and contentious governance discussions to find a bridge solution for deployment.
Thanks to this expansion, Uniswap protocol users will be able to benefit from low transaction fees on the BNB Chain network compared to Ethereum, to trade and exchange tokens across the network.
Alfonso Casanova, Growth Manager at BNB Chain, said, “Thanks to the active and dedicated community and the network’s ability to scale and reach, BNB Chain serves as a launchpad for everything related to web3, where protocols looking to reach larger audiences can grow. We are pleased to see Uniswap’s continued commitment to delivering value to its users and building the future of decentralization.”
In February, a governance proposal by 0x Plasma Labs to deploy Uniswap v3 on the BNB Chain network was approved by more than 55 million UNI token holders who voted in favor. 0x Plasma Labs explained at the time that Uniswap could capture up to 50% of PancakeSwap’s market share. PancakeSwap is the leading decentralized exchange on the BNB Chain network with a total trading volume of $2.5 billion.
Deploying Uniswap on the BNB Chain network means it can capture a larger share of the decentralized trading market and represents an important step towards increasing accessibility and liquidity for its users.
Wormhole was selected as a specific bridge for the protocol to connect to the BNB Chain network in a contentious governance vote, helping users transfer assets from the Ethereum mainnet to the BNB Chain network. Two active investment companies, Andreessen Horowitz and Jump Crypto, fiercely competed in this vote, with A16z leveraging its large holding of UNI tokens to vote against the proposal to choose Wormhole.