Uniswap, Aave, and many more are embracing multi-chain operations
Uniswap V3 has become the latest DeFi protocol set to deploy on a new blockchain, in this case, Polygon. It’s one of the most recent moves to multi-chain deployment among various other DeFi blockchain platforms this year. We’ve seen Aave, ApeSwap, 1inch Network, ShibaSwap, and Alcor Exchange embrace various blockchain, emphasizing that multi-chain is the way to go..
Check out how and why all of these DeFi solutions opted to go multi-chain in the text below. To find out more information about each of these dapps, click on the links in the article.
Uniswap announces Polygon expansion
In December 2021, the Uniswap community voted in favor of the Uniswap v3 contracts deployment on the Polygon PoS chain. The governance proposal came from Polygon CEO Mihailo Bjelic, whose platform has seen explosive growth this year. The proposal got the okay in the process that included the participation of more than 72.6 million votes and generated a 99.3% consensus on the matter.
Uniswap v3 is the most recent iteration in the evolution of the well-known decentralized exchang, throwing in new and improved features and functionalities. These include concentrated liquidity, active liquidity, non-fungible liquidity, range orders, flexible fees, license, and advanced oracles.
Aave finds lending success on Polygon
Uniswap is far from being the only platform with its sights set on multi-chain strategy this year. Decentralized lending protocol Aave is also hard at work on this goal. Originally founded on Ethereum, Aave’s team decided to launch its lending markets on Polygon in March 2021, which proved to be a gigantic success. Since the move, the platform has experienced stable growth, while preparing to launch on more networks in the future.
In August 2021, its CEO Stani Kulechov announced the plans for expansion of the platform’s lending and borrowing markets on Solana. The expansion would go through the EVM-compatible solutions Neon Labs, Avalanche, and the Optimistic Rollup solutions Arbitrum and Optimism.
ApeSwap swings to Polygon
Already being considered a multi-chain decentralized exchange, ApeSwap is currently running on Binance Smart Chain (BSC) and Polygon. Originally built on BSC, the exchange also launched on Polygon in July 2021, as part of the mission to evolve toward supporting cross-chain assets on the ever-larger DeFi market.
This move has brought multiple benefits to users of both Polygon and ApeSwap, including higher accessibility to the dApps, high cross-chain functionalities, lower gas prices, and faster transactions. Liquidity on the new blockchain is incentivized by bridging one BANANA for every block created on Polygon. Additionally, users can stake their earned BANANA to earn other tokens and unlock special features.
1inch Network finds demand on BSC
Another multi-chain platform, 1inch Network began on Ethereum, only to add BSC into the mix in February 2021. The DeFi solution also added Polygon a month later, due to massive user demand. Naturally, the moves have brought the platform sustainable user base growth.
With these moves, the exchange aggregator has made its Aggregation Protocol and Liquidity Protocol available to BSC and Polygon users. In other words, the users were given the same functionalities on these blockchains as they already had within the Ethereum network.
ShibaSwap attracts masses on BSC
Launched as part of the Shiba Inu (SHIB) coin ecosystem, ShibaSwap is a very young DEX that is already making waves. Without a working product associated with it at the time, the SHIB token was launched on Uniswap in November 2020. Regardless, the token gained traction and its price kept increasing organically over time thanks to nothing but user activity, discovery, and hype.
Driven by this success, the team launched its own DeFi platform – ShibaSwap, where users can buy and sell NFTs, stake and farm tokens, and more. Through many of these actions, they can earn BONE, the governance token of the ShibaSwap ecosystem. The project started out on Ethereum. However, in November 2021 it found its way to BSC, allowing users to trade tokens without having to pay high gas fees.
Alcor Exchange leading pack on EOSIO chains
Since the start of 2021, currency swap platform Alcor Exchange has been recording massive success thanks to offering zero-fee NFT trading and the creation of NFT tokens. Alcor Exchange also operates on other chains, including EOS, BOS, and Telos.
In June 2021, Alcor Exchange added the BOS IBC technology into the fold. This enabled fully decentralized, no-fee cross-chain transfers of any tokens between the supported blockchains. Additioanlly, the integration of BOS IBC with Alcor Exchange led to the creation of a fully decentralized tool for moving liquidity between blockchains.
Uniswap the latest to bet on interoperability
The push for multi-chain functionality has been growing stronger, while its practical application has gained significant momentum in 2021. Platforms are increasingly recognizing the benefits of interoperability for everyone involved. These include cross-chain composability, lower fees, improved efficiency, and boosted user experience.
Altogether, these improvements should result in wider adoption of blockchain technology and DeFi as an economic mechanism. Uniswap is just the latest in a series of DeFi platforms that see the potential and benefits in multi-chain support. Their success is already palpable and we’re excited to see just how much things will improve in the future.
DappRadar will continue monitoring the DeFi space as more exchanges and swaps embrace the multi-chain ideology. To learn the latest DeFi news, follow DappRadar on Twitter and Discord. You can also join the DappRadar PRO community and benefit from exclusive Discord discussion and the most up-to-date DeFi stats.