0xPlasma Labs Proposal for BNB Chain to Uniswap

0xPlasma Labs has released a governance proposal for the deployment of Uniswap v3 on Binance's BNB Chain. The proposal highlights several reasons why BNB Chain would be a good fit for Uniswap, including Binance's track record of supporting the growth of crypto projects and the potential for additional adoption of Uniswap's NFT platform on BNB Chain. Ilia Maksimenka, the CEO of 0xPlasma Labs, believes that Uniswap's total value locked (TVL) could increase by $1 billion if the deployment is successful.

Uniswap v3 currently has $2.57 billion in TVL, with most of that on the Ethereum network. However, Uniswap has also been integrated into four other blockchain networks, including Polygon, Celo, Arbitrum, and Optimism. BNB Chain is currently the second-largest blockchain infrastructure by volume and user base, making it a potentially attractive option for Uniswap.

In their proposal, 0xPlasma Labs outlines several potential benefits of deploying Uniswap on BNB Chain. These include an increase in Uniswap's user base, with the potential for an additional one to two million users.

The biggest benefit that the BNB Chain Decentralized Finance (DeFi) community will gain from Uniswap v3 is its concentrated liquidity model. In traditional Decentralized Exchanges (DEX), liquidity is distributed evenly among all liquidity pools, regardless of their liquidity or efficiency. This can lead to capital being spread too thin, with liquidity providers not getting as much value, trading fees, and APY for their capital as they could. By allowing liquidity providers to concentrate their liquidity in specific narrow price ranges of the pool, Uniswap v3 allows them to maximize the value of their capital and get the most out of their liquidity provision. Uniswap v3 is 500 times more capital efficient than any fork of Uniswap v2.

Overall, 0xPlasma Labs believes that deploying Uniswap on BNB Chain could be a strategic move that would help to further grow and develop the global DeFi ecosystem. It remains to be seen whether the proposal will gain traction within the community and whether Uniswap will ultimately decide to deploy on BNB Chain.

Proposal: https://gov.uniswap.org/t/deploy-uniswap-v3-1-0-3-0-05-0-01-to-bnb-chain-binance/19734

To support and discuss the proposal, please join Uniswap Governance Forum.