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Uniswap DAO completes vote for proposed BNB deployment

Quick Take

  • Uniswap DAO has concluded the final vote to deploy Uniswap v3 on the BNB Chain.
  • The vote passed amid intense debate among delegates about crypto-bridging solutions.

Uniswap DAO has concluded the final vote that will be used to execute the proposed deployment of Uniswap v3 on the BNB Chain.

The vote ended on Friday with 66% of DAO delegates in favor of the move, according to Tally voting page. Delegates with major voting power including Ethereum software company ConsenSys and Compound Finance founder Robert Leshner voted in favor of the proposal. Meanwhile, venture capital giant Andreessen Horowitz voted against the proposal, deploying 15 million votes in the process.

This particular vote has created a significant debate about the governance process for cross-chain app deployments. Several delegates including bridge providers argued against the deployment going ahead with only Wormhole as the chosen bridge provider. A bridge provider is a protocol that is used to send crypto tokens across supported networks. They instead advocated for a bridge-agnostic solution. Andreessen Horowitz for its part was in favor of LayerZero being chosen, rather than Wormhole.

These debates have led to the creation of a bridge assessment committee for Uniswap. This committee will develop a framework for the governance proposal that will guide future cross-chain deployments.

Capturing market share

With the vote finalized, Plasma Labs will be looking to deploy Uniswap v3 on the BNB Chain. This execution could happen after the governance process passes a temporary waiting period.

Plasma Labs, in its proposal, said that Uniswap may target as much as half of PancakeSwap’s market share. PancakeSwap is the leading decentralized exchange on the BNB Chain. The platform controls $2.4 billion in total value locked, according to DeFiLlama.

Uniswap’s proposed deployment on BNB Chain arguably comes with a sense of urgency. This is because Uniswap’s business license for its v3 iteration expires on April 1. The license prevents other platforms from launching copy-cat protocols.

PancakeSwap, during a recent ask-me-anything session, expressed plans to launch a third version of its protocol. PancakeSwap is itself a fork of Uniswap v2 and has gone on to process more than $432 billion in volume since its launch. Some Uniswap delegates have expressed concern that not deploying on BNB Chain before the license expiration could see the protocol concede market share to competitors.