Uniswap Labs, the team behind the popular Uniswap Protocol, has been at the heart of DeFi for years.
One of the big challenges for DeFi on Ethereum is the cost of transactions. Because Ethereum is so decentralized, the transactions on its main layer (L1) can be expensive and slow. Ethereum recently started helping Layer 2s (L2s), which are built on top of Ethereum, to become faster and cheaper. This is where Unichain steps in.
Making DeFi More Affordable
According to its blog post, Unichain aims to smooth things out, offering faster, cheaper, and more efficient DeFi across multiple chains. It will move transaction processing to its L2, lowering transaction costs by around 95%. Over time, the costs are expected to drop even more. This helps keep DeFi accessible to everyone, without breaking the bank.
This new protocol will start with one-second block times, and soon introduce 250-millisecond “sub-blocks”, making transactions feel instant. Faster transactions not only make it easier for users but also help markets run more smoothly and prevent money from being lost to front-running.
Introducing @unichain — a new L2 designed for DeFi ✨
Fast blocks (250ms), cross-chain interoperability, and a decentralized validator network
Built to be the home for liquidity across chains pic.twitter.com/lqfJh6Ltio
— Uniswap Labs 🦄 (@Uniswap) October 10, 2024
This boost in speed is thanks to a special tool called a block builder, made with the help of Flashbots. The builder uses a trusted execution environment (TEE), which helps improve speed and make transaction processing more reliable and transparent.
More About Unichain
One of the growing pains in DeFi is the rise of multiple L2s, which have split up liquidity and made user experiences clunky. Unichain is working to fix that by enabling seamless access to all chains. As part of the Optimism Superchain, Unichain will partner with OP Labs to allow cross-chain swaps, so users can move between chains effortlessly.
For chains outside the Superchain, Unichain is working on improving how different blockchains talk to each other. With initiatives like ERC-7683, the goal is to make swapping between any chains feel as easy as pie.
Excited to announce @unichain
This is a labor of love based on 6 years of designing and building in the DeFi space
We think what we’re building will be the best home for DeFi
Unichain is built on top of the Superchain – with a few new additions that we’re bringing to the… https://t.co/pt6V2sEuYA
— Hayden Adams 🦄 (@haydenzadams) October 10, 2024
Unichain is just getting started. It’s built to be modular, meaning new features can be added to make it even more decentralized and user-friendly. And, like all good things, it’s open-source, so other chains can hop on board and use its technology too. Uniswap Labs will also continue to contribute to scaling Ethereum, ensuring DeFi keeps getting better for everyone.
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