Uniswap unveils Layer-2 Unichain solution as part of Optimism Superchain

• Uniswap Labs has announced the release of Unichain, its Layer-2 solution built on the Ethereum blockchain.
• Unichain is designed to scale transactions and cross exchanges.
• UNI rose 10% following the announcement.

Uniswap (UNI) posted double-digit gains on Thursday after unveiling the launch of its DeFi Layer-2 solution, Unichain. Unichain is built to provide seamless cross-transactions while scaling the Ethereum blockchain.

UNI is growing following the launch of Unichain by Uniswap Labs

Uniswap Labs has announced the launch of a testnet for its Ethereum Layer-2 solution known as Unichain. This new chain is designed to solve some of the interoperability issues in DeFi while increasing transaction speed for Ethereum’s main chain.

“We’re launching Unichain – a fast and decentralized L2 Superchain that was built to be the home for DeFi and on-chain liquidity,” Uniswap Labs said in an X post on Thursday.

The firm claims that Unichain is designed to extend the Ethereum roadmap, offering a 95% cost reduction compared to Mainchain.

Uniswap also stated that its partnership with Flashbot, an organization focused on addressing the challenges posed by Ethereum Maximal Extractable Value (MEV), would accelerate the creation of blocks on Unichain.

Due to its dynamic user base, the Ethereum Layer-1 network often suffers from high gas charges during peak periods. This also leads to slow transaction speeds and more opportunities for validators to extract MEV from transactions.

Unichain announced that it will address the challenge through a block builder that uses a trusted execution environment (TEE), which will improve the speed and transparency of transactions.

The DeFi platform also plans to launch cross-chain functionality through ERC-7683, a token standard proposed to improve cross-chain transactions while minimizing errors for better security.

Unichain will be built using the OP developer toolstack and will be a member of the Optimism Superchain, a unified Layer 2 blockchain network, including the core network, Optimism mainnet, Blast, Celo, etc.

As these chains become more interoperable and cheaper to launch, the crypto market may witness a proliferation of application-specific L2s across the DeFi landscape.

Some members of the crypto community have pointed out that the release of a native Layer-2 chain for Uniswap could have an impact on the Ethereum mainnet.

According to DeFillama, Uniswap generates the most revenue for Ethereum, contributing as one of the largest user bases for the Layer-1 chain.

Following the announcement, Uniswap’s native token UNI rose around 14% before seeing a slight correction.