GFX Labs voted for proposal 31 to deploy Uniswap v3 on BSC. Setting aside the bridge provider discussion after the completion of the Snapshot vote, we would like to elaborate upon our reasoning for voting to deploy on BSC, which some view to be controversial.
Revisiting our post from December, it is evident that Pancake Swap has significant trading volume and utilization. For those who are not familiar, PancakeSwap is a direct Uniswap v2 fork. If Uniswap v3 were to be deployed to BSC, we could significantly reduce PancakeSwap’s position in the DEX market and reduce the incentive for PancakeSwap to fork Uniswap v3 when the BSL expires in April.
The best example of Uniswap v3 competing with a Uniswap v2 fork is Polygon’s QuickSwap. Before Uniswap v3’s deployment on Polygon, QuickSwap had the majority of Polygon DEX market share. Within two months of Uniswap v3’s deployment, it took over most of Polygon DEX’s market share.
Planning beyond proposal 31, we believe Uniswap should be deployed on other popular and up-and-coming EVM chains to reduce the incentive for forks to be launched post-BSL.
There are currently five deployments of Uniswap v3 and one pending deployment (zkSync). In addition to BSC, we expect at least 2-5 more deployments before April 1st, approximately ten deployments by the end of April, and 20-30 by year-end. The question we should be working to solve now is what should Uniswap be doing to make certain it maintains its market share domiance post-BSL?