Uniswap Launches Ethereum L2 Unichain, UNI Token Rises 13%

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Uniswap’s native governance token UNI rose 13% to $8.13 after Uniswap Labs released Unichain, its new Ethereum layer 2 solution. UNI is now trading above $8, up about 12 % in the last 24 hours, according to CoinGecko data.

Developed on the OP Stack, Unichain aims to address key challenges facing the Ethereum ecosystem, such as high gas fees, suboptimal execution quality, and fragmented liquidity, the team shared in a white paper.

Unichain will use Optimism Superchain to facilitate better access to liquidity and decentralization across multiple tier 2 networks.

“This is a labor of love based on 6 years of designing and building in the DeFi space. We believe that what we are building will be the best home for DeFi,” Hayden Adams, CEO of Uniswap Labs, expressed his excitement about the launch of Unichain.

To ensure transparency and security, Unichain uses a verifiable block building mechanism using a trusted execution environment (TEE). The team said the approach helps mitigate the risk of maximum extractable value (MEV) leakage and provides users with a more predictable and fair transaction experience.

Unichain also incorporates a trustless reversal protection mechanism to strengthen its security. This feature ensures that users do not pay for failed/unsuccessful transactions.

In addition to building verifiable blocks, the new optimistic stacking solution integrates Flashbots’ Rollup-Boost technology to enable faster block times and reduced latency.

Future plans

The platform is set to initially support Uniswap protocol versions V2 and V3, with a preview of V4 expected by the end of the year.

The team also suggested potential extensions of the Unichain Validators Network (UVN) in the future to increase the security and correctness of the packet sequencing process. Uniswap Labs wants to build Unichain as “the best place to access DeFi in bundles.”

“The Internet of Value cannot run on a single chain. Ethereum’s rollup-centric roadmap aims to scale by having many L2 chains that seamlessly interact with each other. We are excited about this vision and aim to accelerate it,” noted Adams. “Unichain will be MIT licensed and we hope to see our technology adopted by others.”

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