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Long-awaited layer two scaling is now available on Uniswap v3, although in a restricted manner at first.
With the release of version 3 on Optimistic Ethereum, the long-awaited layer two scaling solutions upgrade for Uniswap has finally been found in the public.
In a post on July 13, the world’s most popular decentralized exchange stated that it was pleased to finally announce the alpha launch of Uniswap v3 on the Optimistic Ethereum (OΞ) mainnet.
The alpha launch is a limited version of the full system which helps developers deploy the system gradually and address any issues that may arise. The blog post elaborated:
“Please treat this as an early alpha product. Optimistic Ethereum is a complex Layer 2 scaling solution still in need of rigorous battle testing.”
The DEX has issued a warning about probable disruption and has indicated that withdrawals from O to layer one would take seven days. It also noted that there are just a few assets available at launch, including ETH, USDT, WBTC, DAI, and SNX, but that more would be added in the next days and weeks.
During the alpha stage, the platform will initially enable 0.6 transactions per second. It went on to say that this should correspond to a transaction capacity comparable to layer one, but transactions on OΞ confirm instantaneously, implying that there are no more pending or stalled swaps.
According to Uniswap, assuming v3 has the same use as layer one, OΞ should give up to 10 times the transaction cost reductions, but rising demand will drive gas costs up. As the infrastructure is tested and improved at scale, transaction speeds will be enhanced in the next weeks and months.
Hayden Adams, the creator of Protocol, commented on the debut and high-speed transaction capabilities, saying:
“Building general purpose Optimistic Rollups is an extraordinary undertaking and a critical step for decentralized finance to gain mass adoption.”
👀 It’s happening
🔥 Instant transactions and a steady increase in scaling w/ the end goal of fully meeting demand for low cost, high speed DEX trading
🦄 All built on Ethereum and preserving decentralization https://t.co/SyVtUsswYW
— Hayden Adams 🦄 (@haydenzadams) July 13, 2021
Initial users have been impressed, with Bankless founder David Hoffman exclaiming “It’s instantaneous and insanely cheap. 5 swaps in 30 seconds, and I wasn’t even trying to be fast.”
Uniswap said that the scaling solution is complementary to Ethereum 2.0:
“Scaling Ethereum will be an iterative process, but this is a major step forward. Optimistic Rollups and ETH 2.0 are complementary scaling solutions and together will propel DeFi to mainstream adoption.”
OΞ employs an optimistic rollup, which modifies the zero-knowledge principle by presuming that all transaction verifications are valid. Users can only interfere if they observe an erroneous transaction, in which case they can provide a “fraud-proof” signal to indicate that the data is incorrect.
Synthetix, a DeFi platform, has also announced the addition of Optimistic Ethereum to its layer two exchange for the week commencing July 26. The Ethereum layer two scaling solutions provider announced a partnership with blockchain analytics platform Etherscan in late May.