Decentralized exchange Uniswap to support token bridge ‘Wormhole’

Uniswap to support Wormhole

The Uniswap Foundation announced on the 31st that it will adopt Wormhole’s token bridge as part of its plan to deploy the Uniswap v3 decentralized exchange (DEX) on the BNB chain.

Uniswap Delegates

It’s been a busy week in governance. A short thread on what is going on, and where your voice & vote are needed, below:

1/ A Snapshot Poll to select the bridge for the BNB proposal is live and ending tomorrow at 6 am ESThttps://t.co/cKA0zbxAlv

—Uniswap Foundation (@UniswapFND) January 30, 2023

After discussions at the Uniswap DAO (Decentralized Autonomous Organization), a community vote was held to select among the other candidates LayerZero, Celer and deBridge. Wormhole won 62% of the voting by cryptocurrency UNI holders.

As for the process going forward, a comprehensive proposal will be made on deploying Uniswap v3 on the BNB chain, leading to a final governance vote.

Wormhole provides asset interoperability (bridge) across many blockchains including Ethereum (ETH), BNB Chain (BNB) and Solana (SOL).

Not limited to Wormhole, bridge services that issue the same number of wrapped (alternative) tokens as deposited assets on a separate chain have often been pointed out as having security issues. In June 2010, Harmony (ONE)’s Horizon Bridge was robbed of the private key managed by the developer, and 13 billion yen ($100 million) of virtual currency was illegally leaked. Wormhole also had a code vulnerability exploited in February 2022, resulting in the unauthorized outflow of Ethereum (ETH) worth 40 billion yen ($320 million).

Relation:L1 chain Harmony announces hacking damage, illegal outflow of about 13.5 billion yen

Due to this background, the Uniswap DAO community, which was negative about choosing a token bridge, expressed skepticism about relying on a single third-party bridge. DeBridge, the co-founders of Celer and others advocated the use of multiple bridges, citing the potential for single points of failure in protocol design for distributed applications.

Relation:Uniswap Approves Deployment To BNB Chain With Preliminary Vote

However, Uniswap plans to give priority to multi-chain deployment by then, as the source code business license protection expires on April 1, 2023. The majority agreed that it would be appropriate to support a single bridge, even if realistic development resources were taken into account.

Porter Smith partner of a16z, a major VC firm, argued that the official version that users can trust should be deployed to other chains within the deadline to avoid the proliferation of fork (copy) applications. He personally recommended LayerZero, but said he would let the community decide.

Relation: LayerZero refutes allegations about smart contract vulnerabilities

What is Uniswap license?

Uniswap’s current code “V3”, which was officially launched on May 5, 2021, has implemented several new features such as improved gas prices and enhanced liquidity.

The V3 code is currently protected by a license called “Business Source License 1.1” to prevent copying by forked DEXs such as SushiSwap, but from April 1, 2011, the typical open source software “GPL license will be switched to .

SushiSwap, which was born in 2020 as a fork (copy) of Uniswap, quickly rose to prominence, raising $1.4 billion (about 150 billion yen) in less than two weeks after launching due to the chaotic “vampire attack.” bottom.

SushiSwap was initially considered a memetic project, but at that time it developed into a major project in the DeFi field due to the development intervention of Sam Bankman-Fried, former CEO of major derivatives exchange FTX. SushiSwap is now out of Sam’s hands and operating independently.

Relation:SushiSwap Partners with Sei Network to Offer Perpetual Trading

Relation:What is “SushiSwap” that even beginners can understand | Explanation of features and mechanism

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