Uniswap, the top decentralized exchange (DEX) based on trade volume, has unanimously voted to deploy its V3 iteration on Polygon’s newly launched zkEVM Layer 2 network.
This move is aimed at solidifying Uniswap’s position as the top DEX and thought leader. Competition among Layer 2s (L2s) is intensifying, with Matter Labs and Polygon both launching rollups powered by zero-knowledge proofs or zkEVMs.
Although Polygon zkEVM has only attracted $3.9M in total value locked (TVL), Quickswap, the leading DEX on the Polygon PoS Chain, is the largest DeFi protocol on zkEVM.
Furthermore, rival zkEVM, ZkSync Era from Matter Labs, has quickly emerged as the fourth-largest L2 network with a TVL of $242M. Uniswap is also expected to launch on ZkSync Era.
Layer 2 rollups have emerged as the leading scaling solution for Ethereum in 2022, and Uniswap was quick to launch on Polygon’s PoS Chain. This deployment remains Uniswap’s third-largest deployment with $98M in TVL.
Although optimistic rollups like Arbitrum and Optimism offer high compatibility with the Ethereum Virtual Machine, zero-knowledge (ZK) proof-based rollups are preferred due to better privacy and faster finalization.
However, early ZK-rollups were limited by specialized programming languages. A new generation of zkEVMs has promised to overcome these challenges by offering a combination of privacy and performance benefits of ZK-proofs with the ability to easily deploy code written for the EVM.
