A proposal to deploy Uniswap v3 on the BNB Smart Chain (BSC) has been passed by Uniswap DAO. Approved on Sunday morning, 0xPlasma Labs has been authorized to handle the deployment on behalf of the DAO.
Snapshot data shows that about 80% of the votes were in support of the initiative.
Talks about deploying Uniswap v3 on BSC began in December. Ilia, the CEO and founder of 0xPlasma Labs, proposed discussing the possibility of deploying Uniswap v3 on the BNB Chain. According to him, the move could bring an additional $1 billion in Total Value Locked (TVL) and 1-2 million new users to the Uniswap ecosystem.
The Uniswap ecosystem is crucial in developing the global decentralized finance (DeFi) ecosystem. However, it has not yet deployed its protocol to the second-largest blockchain infrastructure by volume and user base, BNB Chain.
He explained that BNB Chain was a potential market for Uniswap v3 because of its large user base, active community, strong governance model, and the global presence of the Binance brand. However, despite BNB Chain’s significant DeFi community, there was a need for a “more advanced DEX ecosystem to boost the general DeFi ecosystem development.” Furthermore, BNB Chain needs a “better” source of liquidity with less slippage.
On the flip side, the Uniswap ecosystem is expected to gain an additional $1 billion of total value locked (TVL) from the deployment. This is in addition to other supposed benefits like new users for Uniswap and more adoption of the Uniswap NFT platform.
Meanwhile, 0xPlasma Labs proposed using Celer Bridge for the Governance cross-chain messaging, as well as launching financial incentives for liquidity.