In February 2023, the Uniswap DAO approved the deployment of Uniswap V3 on Boba Network following a community vote. This deployment marks a significant milestone for Boba as it integrates one of the most popular decentralized exchanges (DEXs) with its Layer-2 infrastructure. Uniswap V3’s efficient Automated Market Maker (AMM) model, combined with Boba’s lower fees and scalability, creates an attractive platform for decentralized trading and liquidity provision.

Uniswap V3 is well-known for its concentrated liquidity provision and enhanced capital efficiency. By deploying on Boba, it takes advantage of Optimistic Rollups to reduce costs and improve throughput. This deployment is expected to bring additional liquidity, users, and value to both Uniswap and Boba.

Why Deploy Uniswap V3 on Boba Network?

Boba Network’s Layer-2 scaling solution reduces gas fees and increases transaction throughput by using Optimistic Rollups. These enhancements made Boba an ideal environment for Uniswap V3, which operates on Ethereum but suffers from high fees during periods of network congestion. Uniswap’s deployment on Boba allows users to trade and provide liquidity with lower transaction costs, addressing one of the biggest challenges faced by traders on Ethereum’s Layer-1.

With gas fees on Boba being 40 to 100 times lower than those on Ethereum, the platform became more accessible, particularly for smaller traders and decentralized finance (DeFi) participants. Additionally, the integration with Boba brings in HybridCompute functionality, enabling Uniswap to access external data and off-chain resources efficiently, further expanding the possibilities for dApps built on Uniswap’s infrastructure and reaping the following benefits:

1. Increased Total Value Locked (TVL);
2. Access to New Markets;
3. Developer Opportunities.

Boba Network has seen growing adoption in regions like Asia, particularly in South Korea and Japan, and by deploying Uniswap V3 on Boba, Uniswap is better positioned to tap into these markets, bringing in a new group of users and further expanding its global presence. This can boost adoption of both Boba and Uniswap as they cater to regions with increasing interest in decentralized finance.
For developers building on Boba, the integration of Uniswap V3 offers access to Uniswap’s liquidity and AMM infrastructure, making it easier for developers to build more complex decentralized applications that use Uniswap’s smart contract architecture and Boba’s scalability and reduced fees.

Highlights

• Uniswap V3 was deployed on Boba Network in February 2023, leveraging Boba’s Layer-2 scalability to reduce gas fees and increase transaction speeds.
• The deployment allows Uniswap to take advantage of Boba’s Optimistic Rollups, offering 40-100x lower fees compared to Ethereum’s Layer-1.
• Uniswap’s integration with Boba is expected to increase Total Value Locked (TVL), attract liquidity providers, and improve cross-chain asset transfers between Boba and Ethereum.
• Boba Foundation has allocated $1 million in BOBA tokens to incentivize liquidity providers and establish deep liquidity pools for Uniswap V3.
• Uniswap V3 on Boba provides new opportunities for developers, especially in cross-chain applications, while expanding into growing markets such as Asia.