Layer-2 blockchain solutions often introduce better throughput and higher efficiency than their Layer-2 counterparts. One example is Boba Network, which uses optimistic rollups to achieve multichain scaling. The network will soon welcome Uniswap V3 as the latest addition to its DeFi arsenal.
Boba Network Merges Web2 And Web3
The blockchain industry has seen various Layer-2 blockchain solutions hit the market. They all try to improve the efficiency of existing blockchain layers, with a strong focus on Ethereum. Boba Network uses optimistic multichain scaling technology to allow for more flexible blockchain communication. It is compatible with all EVM-based tools and provides substantial fee discounts. In addition, its hybrid Compute technology allows for smarter smart contracts and leveraging real-world data.
In addition to its real-world focus, Boba Network also aims to explore decentralized finance opportunities. That includes paying attention to projects like Uniswap, the leading decentralized exchange on Ethereum. Following an overwhelmingly positive community vote, the protocol will expand to Boba Network in the coming weeks. It will make the sixth network supported by Uniswap, following Ethereum, Arbitrum, Optimism, Celo, and Polygon.
Enya Labs Co-founder and CEO Alan Chiu states:
"Boba Network's Hybrid Compute will make it possible for ecosystem developers to build a new generation of hybrid on-chain/off-chain DeFi applications atop of Uniswap. While the Uniswap protocol will remain permissionless, developers will be able to build a compliant layer atop of it that leverages Hybrid Compute to tap existing, TradFi-friendly KYC/AML services. As a result, Uniswap will become more accessible to the larger institutional market."
FranklinDAO and the Boba Foundation submitted the proposal to bring Uniswap V3 to Boba Network. It received strong community support from GFX Labs, Blockchain at Michigan, ConsenSys, and other voters. In addition, the Boba Foundation committed $1 million in BOBA tokens to ensure Uniswap V3 adoption among network participants. That includes awarding grants to projects incentivizing liquidity on Boba's Uniswap V3.
A Big Move For Uniswap
Although Uniswap V3 is the largest decentralized exchange, it needs to attract more liquidity. The 2022 bear market saw its TVL drop from over $8 billion to under $3.5 billion. However, things have improved again in early 2023, thanks to all crypto markets gaining value. As such, Uniswap V3 sits at nearly $4 billion in Total Value Locked again. Adding liquidity through Boba Network may push that number past $4 billion in the coming weeks.
Boba Network has attracted another popular decentralized exchange in Sushsiwap. That project was once considered a major competitor to Uniswap, although Uniswap has lost some traction since its launch. It has over $1.75 million in TVL on Boba Network. It seems plausible to expect a similar - or higher - number for Uniswap once it launches on this network. With the extra incentives from the Boba Foundation, that goal doesn't seem out of reach.
Furthermore, Uniswap benefits from this migration in other ways. Boba Network has become a prominent network in key Asian regions like South Korea and Japan. Uniswap will gain exposure to communities in these and other countries. In addition, Boba's Hybrid Compute features can result in new Uniswap V3 trading strategies and bring more users to the leading decentralized exchange.