Uniswap Poll Shows 80% Support Decentralized Crypto Exchange's Move to BNB Chain

More than 20 million UNI were staked by community members to cast their votes.

AccessTimeIconJan 23, 2023 at 12:16 p.m. UTC
Updated Jan 23, 2023 at 4:10 p.m. UTC
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Shaurya is an analyst/editor for CoinDesk's markets team in Asia.

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A "temperature check" to gauge support in the Uniswap community for a possible move of the decentralized exchange’s V3 protocol to the BNB Chain saw 80% of UNI token holders vote in favor.

Voting on the proposal, which was floated by OxPlasma Labs, ended Sunday night with about 20 million tokens cast in favor of the move. “Our proposal to deploy Uniswap v3 on BNB Chain has passed the 'Temperature Check' with 20M votes 'YES' and 6,495 $UNI voters (the biggest number for the whole Uniswap Governance History),” Plasma tweeted.

Uniswap, like other decentralized exchanges (DEXs), relies on smart contracts to match trades and supply liquidity between traders. It locks up over $3.4 billion worth of various tokens across five blockchains, with V3, the latest iteration, commanding $2.6 billion of that figure, according to DefiLlama.

Plasma said the move is warranted because BNB Chain, a blockchain closely linked to the centralized crypto exchange Binance, has a large and growing user base, providing a potential new market, as well as high transaction speeds and low fees, making it a suitable platform for Uniswap’s DEX services.

“Deploying to BNB Chain could help Uniswap to tap into the growing popularity of DeFi (decentralized finance) in the Binance ecosystem,” developers wrote in that proposal. “BNB Chain offers unique features such as staking and cross-chain support that could enhance Uniswap v3’s functionality.”

Among several other benefits, Plasma added a move to BNB Chain could attract at least $1 billion in additional liquidity from the BNB Chain ecosystem as well as “1-2 million new users.”

Plasma is expected to float a final proposal outlining the move in the coming weeks.

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Shaurya is an analyst/editor for CoinDesk's markets team in Asia.


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Shaurya is an analyst/editor for CoinDesk's markets team in Asia.