# \[RFC\] Deploy Uniswap v3 on X Layer

**URL:** <https://gov.uniswap.org/t/rfc-deploy-uniswap-v3-on-x-layer/24307>\
**Category:** Requests for Comment\
**Created:** [July 24, 2024, 6:33am UTC](https://gov.uniswap.org/t/rfc-deploy-uniswap-v3-on-x-layer/24307 "2024-07-24T06:33:35Z")\
**Posts on this page:** 20\
**Page:** 1

<div class="post-metadata">

**Author:** ![Yohaan\_OKX](https://avatars.discourse-cdn.com/v4/letter/y/ba8739/32.png) [@Yohaan\_OKX](https://gov.uniswap.org/u/Yohaan_OKX)\
**Post date:** [July 24, 2024, 6:33am UTC](https://gov.uniswap.org/t/rfc-deploy-uniswap-v3-on-x-layer/24307/1 "2024-07-24T06:33:35Z")

</div>

**Summary:**  
This proposes the deployment of Uniswap v3 on X Layer.

**Background:**  
X Layer is a zkEVM Layer 2 network built on Ethereum, powered by Polygon CDK, a zkEVM stack for building Ethereum L2 scaling solutions. Developers can easily deploy their existing contracts on zkEVM, and users can move their assets from Ethereum and conduct transactions off-chain. These transactions are bundled into groups with zero-knowledge proofs to verify their validity.

**Motivation:**  
Deploying an instance of Uniswap v3 on X Layer provides numerous opportunities for Uniswap to gain millions of new users from the OKX ecosystem which comprises of approximately 50m. This deployment will be a win-win for both parties as it provides Uniswap with a new user base and revenue stream and X Layer the chance to offer its users access to a battle tested DeFi primitive, which is Uniswap v3.

**Boundless scalability:** 100% EVM compatibility and easy-to-use developer tools for deployment.  
**X Layer is Powered by OKX:** seamless integration to all OKX products, all-in-one Web3 gateway, and access to 50M+ users in the OKX ecosystem.  
**Security:** rely on robust secure mechanisms from Ethereum, with trustless interoperability.  
**Low fee:** same coding experience as Ethereum but 100x cheaper.  
**Portal to Web3:** enter the world of Web3 via OKX Wallet, built with compact infrastructure modules to create innovative DApps.

**Proposal Stakeholders**  
The following list of stakeholders is present to transparently communicate which entities and individuals are involved in proposal creation and implementation.

**Proposer: Yohaan (X Layer DeFi Strategy)**  
This entity is responsible for authoring the proposal & managing the governance process

**Deployer:** [GFX Labs](https://x.com/labsGFX)  
This entity is responsible for the technical deployment of the contracts on the target chain  
• GFX Labs will help deploy the v3 contracts on X Layer and has a track record of safely deploying Uniswap v3 on various EVM-compatible chains

**Frontend:** [Oku Trade](https://oku.trade/)  
The initial frontend where users can interact with the new Uniswap v3 deployment  
• Oku is built and managed by GFX Labs  
• Oku was seeded by a Uniswap Foundation grant in 2022  
• Oku supports twelve chains and continues to aid Uniswap’s expansion to new protocols

**Note:** Oku Trade has become the DAO’s go-to third party front-end for Uniswap deployments since the canonical front-end is owned and operated by Uniswap Labs

**Bridge Provider:** [zkEVM Bridge](https://etherscan.io/address/0x2a3dd3eb832af982ec71669e178424b10dca2ede#writeProxyContract)  
X Layer mainnet bridge allows you to seamlessly move value between Ethereum and X Layer mainnet and can also be used to send and claim messages to and from Ethereum and X Layer.

**Call `bridgeMessage`:**  
To pass a message from Ethereum to X Layer, one needs to first call bridgeMessage as shown below:

| name | value | desc |
| --- | --- | --- |
| `bridgeMessage` | | |
| `destinationNetwork` | 3 | X Layer Network |
| `destinationAddress` | YOUR\_ADDRSS | Which address wants to receive asset |
| `forceUpdateGlobalExitRoot` | true | Default as true |
| `metadata` | 0x | |

**`ClaimMessage` on X Layer:**

1. Request RPC Bridges to get the deposit count
2. Request RPC merkle-proof to get the corresponding proof
3. Claim on X Layer call `claimMessage` [https://www.oklink.com/zh-hans/xlayer/address/0x2a3dd3eb832af982ec71669e178424b10dca2ede/contract#category=proxy-writ](https://www.oklink.com/zh-hans/xlayer/address/0x2a3dd3eb832af982ec71669e178424b10dca2ede/contract#category=proxy-writ)

**Target Chain:** [X Layer](https://www.okx.com/xlayer)  
This is the chain that v3 contracts are deployed on

**Proposal Sponsor:** [GFX Labs](https://x.com/labsGFX)  
This entity has \>1M UNI and is therefore eligible for administering the onchain vote

**Liquidity Bootstrapping and Incentives:**

**X Layer’s Commitment:**  
X Layer commits $1M worth of liquidity to Uniswap pools on X Layer for a minimum of 6 months. All liquidity will be provided on the day of launch. The tokens will be deployed on Uniswap through the X Layer integration with Oku Trade. All liquidity will be provided immediately upon deploying an instance of Uniswap v3 on X Layer.  
**Pools and liquidity committment:**  
• $500k in OKB/USDT 0.30%  
• $200k in OKB/USDC 0.30%  
• $200k in OKB/wETH 0.30%  
• $100k in USDC/USDT 0.05%

**Community Multisig for Liquidity Provisioning:**  
The liquidity committment made by X layer will be sent to a Gnosis Safe on X Layer prior to launch with signers from OKX, Oku Trade and select Uniswap Delegates.

**Deployment Details:**  
If no major points of contention are posed by the DAO during the RFC, the Accountability Committee will  
• Optimistically approve this deployment and consider the deployed contracts on the X layer as canonical, and a comment will be posted on this forum with all the verified contracts

As is the case with all canonical v3 deployments, this deployment will be subject to Ethereum Layer 1 Uniswap Protocol governance and control. The text record of the uniswap.eth ENS subdomain titled v3-deployments.uniswap.eth will be amended by the Accountability Committee to include the reference to the stated v3 contracts on X Layer.

**Timeline:**  
**July 2024** : RFC  
**August 2024:** Liquidity commitment Temp Check  
**August 2024:** Onchain vote to approve onboarding package  
**September 2024:** Uni v3 contracts as well as front end on Oku Trade will be deployed by GFX Labs

---

<div class="post-metadata">

**Author:** ![Doo\_StableLab](https://sea2.discourse-cdn.com/flex016/user_avatar/gov.uniswap.org/doo_stablelab/32/8197_2.png) [@Doo\_StableLab](https://gov.uniswap.org/u/Doo_StableLab)\
**Post date:** [July 25, 2024, 2:33pm UTC](https://gov.uniswap.org/t/rfc-deploy-uniswap-v3-on-x-layer/24307/2 "2024-07-25T14:33:20Z")

</div>

![image](https://us1.discourse-cdn.com/flex016/uploads/uniswap1/original/2X/d/dd358f354c8bf571a1ad05b048790be3ef675da5.png)  
Considering $1M worth of liquidity will be 10% of total TVL right now at X Layer, it’s an interesting opportunity but at the same time, can the team provide the liquidity to escrow account so that “All liquidity will be provided immediately upon deploying an instance of Uniswap v3 on X Layer.”

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<div class="post-metadata">

**Author:** ![jayyu23](https://sea2.discourse-cdn.com/flex016/user_avatar/gov.uniswap.org/jayyu23/32/8583_2.png) [@jayyu23](https://gov.uniswap.org/u/jayyu23)\
**Post date:** [July 25, 2024, 8:26pm UTC](https://gov.uniswap.org/t/rfc-deploy-uniswap-v3-on-x-layer/24307/3 "2024-07-25T20:26:57Z")

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The pools selected for liquidity commitment seem to be primarily aimed at bolstering OKX’s ecosystem token OKB. I would be in favor of this proposal if we amend it to place 30%+ of the liquidity commitments in non OKB-related pools.

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<div class="post-metadata">

**Author:** ![Juanbug](https://sea2.discourse-cdn.com/flex016/user_avatar/gov.uniswap.org/juanbug/32/9251_2.png) [@Juanbug](https://gov.uniswap.org/u/Juanbug)\
**Post date:** [July 25, 2024, 9:52pm UTC](https://gov.uniswap.org/t/rfc-deploy-uniswap-v3-on-x-layer/24307/4 "2024-07-25T21:52:24Z")

</div>

Just so everyone is clear on the procedures, a recent change has been made such that all these deployments are optimistically approved and we (accountability committee) has confirmed this is the native team and not a malicious actor. X Layer is offering to incentive with their own funds, so it’s not a matter of voting yes or no, it is just what it is.

However, a future vote asking the Uniswap community if they are willing to pay for the costs of Oku front end and further incentives will likely also happen similar to prior chains. In this case, promising to escrow fund as @Doo_StableLab mentioned and reallocating towards non-OKX pools as @Jaylan28 mentioned would likely strengthen support for this, but that’s just my opinion.

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<div class="post-metadata">

**Author:** ![Yohaan\_OKX](https://avatars.discourse-cdn.com/v4/letter/y/ba8739/32.png) [@Yohaan\_OKX](https://gov.uniswap.org/u/Yohaan_OKX)\
**Post date:** [July 26, 2024, 5:54am UTC](https://gov.uniswap.org/t/rfc-deploy-uniswap-v3-on-x-layer/24307/5 "2024-07-26T05:54:55Z")

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Hey @jayyu23 , the gas token of X Layer is $OKB and hence most of the pools contain OKB liquidity so it makes sense to create $OKB denominated pool just like how pools in Polygon are denominated in $MATIC, Avalanche in $AVAX. Another advantage would be a lot of volumes to uniswap v3 via OKX CEX ↔ Uniswap v3 arbitrage which will result in a lot of volumes and fees for LPs.

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<div class="post-metadata">

**Author:** ![Yohaan\_OKX](https://avatars.discourse-cdn.com/v4/letter/y/ba8739/32.png) [@Yohaan\_OKX](https://gov.uniswap.org/u/Yohaan_OKX)\
**Post date:** [July 26, 2024, 8:24am UTC](https://gov.uniswap.org/t/rfc-deploy-uniswap-v3-on-x-layer/24307/6 "2024-07-26T08:24:18Z")

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We can definitely do the escrow for the pre-committed TVL. For the escrow, we propose a Gnosis Safe on X Layer with signers from X Layer, Uniswap Delegates and members from the Oku team as signers

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<div class="post-metadata">

**Author:** ![Doo\_StableLab](https://sea2.discourse-cdn.com/flex016/user_avatar/gov.uniswap.org/doo_stablelab/32/8197_2.png) [@Doo\_StableLab](https://gov.uniswap.org/u/Doo_StableLab)\
**Post date:** [July 26, 2024, 2:56pm UTC](https://gov.uniswap.org/t/rfc-deploy-uniswap-v3-on-x-layer/24307/7 "2024-07-26T14:56:40Z")

</div>

Thanks for your transparency. Happy to be on part of Uniswap Delegates to be a signer.

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<div class="post-metadata">

**Author:** ![jy02404353](https://sea2.discourse-cdn.com/flex016/user_avatar/gov.uniswap.org/jy02404353/32/9150_2.png) [@jy02404353](https://gov.uniswap.org/u/jy02404353)\
**Post date:** [July 26, 2024, 3:04pm UTC](https://gov.uniswap.org/t/rfc-deploy-uniswap-v3-on-x-layer/24307/8 "2024-07-26T15:04:45Z")

</div>

Sounds good, x deploys very well

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<div class="post-metadata">

**Author:** ![SEEDGov](https://sea2.discourse-cdn.com/flex016/user_avatar/gov.uniswap.org/seedgov/32/8912_2.png) [@SEEDGov](https://gov.uniswap.org/u/SEEDGov)\
**Post date:** [July 26, 2024, 3:17pm UTC](https://gov.uniswap.org/t/rfc-deploy-uniswap-v3-on-x-layer/24307/10 "2024-07-26T15:17:59Z")

</div>

> [@Yohaan\_OKX](#):
>
> **Pools and liquidity committment:**  
> • $500k in OKB/USDT 0.30%  
> • $200k in OKB/USDC 0.30%  
> • $200k in OKB/wETH 0.30%  
> • $100k in USDC/USDT 0.05%

We understand that ETH should be the main pair for OKB liquidity, as ETH not only has a healthier LVR compared to a stablecoin, but is also a token with very high utilization and is the bridge token (crucial for the in-out to X layer). Therefore, we believe that a higher percentage of deeper liquidity could be driven to the OKB/wETH pair. What do you think about this?

> [@Yohaan\_OKX](#):
>
> We can definitely do the escrow for the pre-committed TVL. For the escrow, we propose a Gnosis Safe on X Layer with signers from X Layer, Uniswap Delegates and members from the Oku team as signers

We also offer from SEED Gov to be on part of Uniswap Delegates to be a signer.

---

<div class="post-metadata">

**Author:** ![Doo\_StableLab](https://sea2.discourse-cdn.com/flex016/user_avatar/gov.uniswap.org/doo_stablelab/32/8197_2.png) [@Doo\_StableLab](https://gov.uniswap.org/u/Doo_StableLab)\
**Post date:** [July 27, 2024, 12:46pm UTC](https://gov.uniswap.org/t/rfc-deploy-uniswap-v3-on-x-layer/24307/11 "2024-07-27T12:46:20Z")

</div>

We actually think in practice, putting their own token OKB is not a deal breaker for us as

1. that’s still in non OKB tokens in liquidity
2. from what we understand, the liquidity works across pools meaning that OKB/USDT and OKB/wETH would mean wETH and USDT can be traded as well. And it would be liquid enough.

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<div class="post-metadata">

**Author:** ![Yohaan\_OKX](https://avatars.discourse-cdn.com/v4/letter/y/ba8739/32.png) [@Yohaan\_OKX](https://gov.uniswap.org/u/Yohaan_OKX)\
**Post date:** [July 29, 2024, 5:36am UTC](https://gov.uniswap.org/t/rfc-deploy-uniswap-v3-on-x-layer/24307/12 "2024-07-29T05:36:01Z")

</div>

Yes, all tokens will be able to be trade against each other using Uniswap’s internal router since they have a common token which is $OKB that connects all pools

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<div class="post-metadata">

**Author:** ![Yohaan\_OKX](https://avatars.discourse-cdn.com/v4/letter/y/ba8739/32.png) [@Yohaan\_OKX](https://gov.uniswap.org/u/Yohaan_OKX)\
**Post date:** [August 1, 2024, 9:23am UTC](https://gov.uniswap.org/t/rfc-deploy-uniswap-v3-on-x-layer/24307/13 "2024-08-01T09:23:48Z")

</div>

Snapshot for the temperature check to deploy Uniswap v3 on X Layer is now live: [https://snapshot.org/#/uniswapgovernance.eth/proposal/0x4d070edcd39b24b67e219f8f0f6308083c28d510ed0a1ac4ed3fb8d5879f3b6b](https://snapshot.org/#/uniswapgovernance.eth/proposal/0x4d070edcd39b24b67e219f8f0f6308083c28d510ed0a1ac4ed3fb8d5879f3b6b)

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<div class="post-metadata">

**Author:** ![0xkeyrock.eth](https://sea2.discourse-cdn.com/flex016/user_avatar/gov.uniswap.org/0xkeyrock.eth/32/8991_2.png) [@0xkeyrock.eth](https://gov.uniswap.org/u/0xkeyrock.eth)\
**Post date:** [August 1, 2024, 1:04pm UTC](https://gov.uniswap.org/t/rfc-deploy-uniswap-v3-on-x-layer/24307/14 "2024-08-01T13:04:31Z")

</div>

Thanks for the proposal. While we support a Uniswap v3 deployment on X layer, we request clarification regarding the following:

> [@Yohaan\_OKX](#):
>
> **X Layer’s Commitment:**  
> X Layer commits $1M worth of liquidity to Uniswap pools on X Layer for a minimum of 6 months. All liquidity will be provided on the day of launch. The tokens will be deployed on Uniswap through the X Layer integration with Oku Trade. All liquidity will be provided immediately upon deploying an instance of Uniswap v3 on X Layer.  
> **Pools and liquidity committment:**  
> • $500k in OKB/USDT 0.30%  
> • $200k in OKB/USDC 0.30%  
> • $200k in OKB/wETH 0.30%  
> • $100k in USDC/USDT 0.05%

Will these be funds deployed as incentives or directly as liquidity pairs? If it is the latter, are these pools planned to be exempt from earning UNI rewards from the onboarding package?

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<div class="post-metadata">

**Author:** ![Yohaan\_OKX](https://avatars.discourse-cdn.com/v4/letter/y/ba8739/32.png) [@Yohaan\_OKX](https://gov.uniswap.org/u/Yohaan_OKX)\
**Post date:** [August 1, 2024, 1:17pm UTC](https://gov.uniswap.org/t/rfc-deploy-uniswap-v3-on-x-layer/24307/15 "2024-08-01T13:17:54Z")

</div>

> [@0xkeyrock.eth](#):
>
> Will these be funds deployed as incentives or directly as liquidity pairs?

These funds will be deployed as liquidity and not incentives

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<div class="post-metadata">

**Author:** ![Yohaan\_OKX](https://avatars.discourse-cdn.com/v4/letter/y/ba8739/32.png) [@Yohaan\_OKX](https://gov.uniswap.org/u/Yohaan_OKX)\
**Post date:** [August 1, 2024, 1:20pm UTC](https://gov.uniswap.org/t/rfc-deploy-uniswap-v3-on-x-layer/24307/16 "2024-08-01T13:20:25Z")

</div>

> [@0xkeyrock.eth](#):
>
> If it is the latter, are these pools planned to be exempt from earning UNI rewards from the onboarding package?

We will most probably use [Merkl](https://merkl.angle.money/) to distribute the incentives and our LPs will be blacklisted from earning any of the rewards

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<div class="post-metadata">

**Author:** ![SEEDGov](https://sea2.discourse-cdn.com/flex016/user_avatar/gov.uniswap.org/seedgov/32/8912_2.png) [@SEEDGov](https://gov.uniswap.org/u/SEEDGov)\
**Post date:** [August 1, 2024, 2:34pm UTC](https://gov.uniswap.org/t/rfc-deploy-uniswap-v3-on-x-layer/24307/18 "2024-08-01T14:34:33Z")

</div>

@Yohaan_OKX we would be grateful for your response to our comments. Thanks

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<div class="post-metadata">

**Author:** ![Yohaan\_OKX](https://avatars.discourse-cdn.com/v4/letter/y/ba8739/32.png) [@Yohaan\_OKX](https://gov.uniswap.org/u/Yohaan_OKX)\
**Post date:** [August 1, 2024, 3:45pm UTC](https://gov.uniswap.org/t/rfc-deploy-uniswap-v3-on-x-layer/24307/19 "2024-08-01T15:45:14Z")

</div>

> [@SEEDGov](#):
>
> We also offer from SEED Gov to be on part of Uniswap Delegates to be a signer.

Definitely, thank you for the offer

---

<div class="post-metadata">

**Author:** ![0xkeyrock.eth](https://sea2.discourse-cdn.com/flex016/user_avatar/gov.uniswap.org/0xkeyrock.eth/32/8991_2.png) [@0xkeyrock.eth](https://gov.uniswap.org/u/0xkeyrock.eth)\
**Post date:** [August 2, 2024, 8:18am UTC](https://gov.uniswap.org/t/rfc-deploy-uniswap-v3-on-x-layer/24307/20 "2024-08-02T08:18:01Z")

</div>

We will vote for this deployment without any incentives. This is based on our analysis of the on-chain environment of X Layer.

 ![Screenshot 2024-08-01 at 15.52.17](https://us1.discourse-cdn.com/flex016/uploads/uniswap1/original/2X/c/c2d91d011dfc59d8b3597137bb1c5366b143a0b8.png)

While Curve has $5M TVL, the complete TVL is in a single USDC-USDT pool, with a wallet labelled “OKX Hot wallet” owning 100% of [the pool](https://www.okx.com/web3/explorer/xlayer/token/0xD1b30BA128573fcd7D141C8A987961b40e047BB6?tab=holders). All other pools essentially have 0 liquidity and the DEX also has $0 24h volume.

 ![Screenshot 2024-08-01 at 15.58.11](https://us1.discourse-cdn.com/flex016/uploads/uniswap1/original/2X/f/f66f17d6cb9dbf9861fedbd185be3dc1782d6fe4.png)

Similarly, on Quickswap, there is a [single wallet](https://debank.com/profile/0x7d9aea3e87c08da9fd14e0e7dd3776d562b39a15) that has supplied $2.7M (76% of the total TVL).

Based on this, we feel incentives are premature.

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<div class="post-metadata">

**Author:** ![kfx](https://sea2.discourse-cdn.com/flex016/user_avatar/gov.uniswap.org/kfx/32/6717_2.png) [@kfx](https://gov.uniswap.org/u/kfx)\
**Post date:** [August 2, 2024, 12:49pm UTC](https://gov.uniswap.org/t/rfc-deploy-uniswap-v3-on-x-layer/24307/21 "2024-08-02T12:49:25Z")

</div>

I similarly plan to vote for a deployment without incentives.

The amount of TVL on the OKX chain is quite low, significantly lower than even for Taiko and Polygon zkEVM:

 ![comparison](https://us1.discourse-cdn.com/flex016/uploads/uniswap1/original/2X/4/4813257b453d1a76cd86e46d66b5b199bfe67c85.png)  
For comparison, see the TVL on Bitcoin’s Rootstock, where Uniswap was deployed without any incentives from the DAO (if I’m not mistaken). While OKX can surely grow to the level of Taiko and zkEVM, it’s not even clear if incentives on these chains have been justified, at the time. Additionally, I expect that OKX is significantly less decentralized than these two chains, which should be a factor too IMO.

---

<div class="post-metadata">

**Author:** ![wario](https://sea2.discourse-cdn.com/flex016/user_avatar/gov.uniswap.org/wario/32/7400_2.png) [@wario](https://gov.uniswap.org/u/wario)\
**Post date:** [August 3, 2024, 7:42pm UTC](https://gov.uniswap.org/t/rfc-deploy-uniswap-v3-on-x-layer/24307/22 "2024-08-03T19:42:08Z")

</div>

Thanks for the proposal Yohaan.  
We at Revert are excited about the deployment and look forward to integrate our products for LPs as soon as possible.

[Next page](https://gov.uniswap.org/t/rfc-deploy-uniswap-v3-on-x-layer/24307.md?page=2)
