Uniswap Voted to Support Arbitrum Layer-2, Will This Help ETH Gas Fees?

This drastically lowers the amount of computation required to complete transactions, with scalability benefits of between 10-100x.

Arbitrum x UNI

The cost of swapping tokens on Uniswap v3 looks set to fall as its community votes in favour of deploying a Layer 2 solution via Arbitrum. Arbitrum is an Ethereum scaling solution which employs optimistic rollups, presuming that transactions are correct by default and only intervening when users submit a “fraud proof” to contest them. 

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Uniswap

The implementation of Arbitrum comes after a governance proposal was submitted on May 26th by user andy8052. 

In their proposal the user noted that: “…not deploying to new and growing networks like Arbitrum and Matic just allows for other exchanges to come in and fill that spot. This could potentially eat into fees earned by governance in the future.”

The community agreed with that sentiment in the most emphatic fashion with 43.23m UNI holders voting for Arbitrum integration as opposed to only 309.34 voting against. As such the snapshot vote passed and Uniswap are moving ahead with Arbitrum.

While optimistic rollups are something that Uniswap have been considering for some time, the company had previously stated it would use Optimism to implement the technology. Following news that Optimism’s mainnet would be delayed until at least July, the DEX decided to jump on Arbitrum instead. The sense of urgency for Uniswap in pursuing the layer 2 solution may in part be driven by the negative reaction of some of its community to the v3 launch. 

Community members were at once perturbed by high transaction costs, “it’s about 28% more expensive for single-hop transactions”, as well as by the additional complexity which v3 introduced, “Add liquidity UI now requires a master’s degree… it’s a huge step backwards”.

While Arbitrum can’t resolve every issue that users may be experiencing with v3, a potential lowering of gas fees may give Uniswap the breathing space it requires to gain a more positive consensus from the community.

Concluding Thoughts

By moving Uniswap to a layer 2 solution, the end user experience should improve markedly. For considerable time now, gas fees on Ethereum have made all but high value exchanges counterproductive. With Uniswap adopting Arbitrum, Uniswap users should see a welcome fall in gas fees.

Source : bsc.news