Today, 15 June 2023, the Uniswap Foundations’s Bridge Assessment Committee has posted the results of the work they have done since being convened in February. Those results have implications on currently-active deployments of the Uniswap Protocol. Below, the UF comments on two of those deployments.
The Avalanche deployment of the Uniswap v3 contracts is currently connected to the mainnet governance contracts via LayerZero. The UF’s Bridge Assessment Committee has not approved the current version of LayerZero (with the protocol’s default configuration) for the DAO’s cross-chain governance use case. However, the Uniswap Foundation currently recommends against replacing LayerZero as the bridge to the Avalanche deployment.
Our rationale is as follows:
- The Avalanche deployment has seen minimal usage and no TVL thus far. Minimal activity and economic value on the destination chain’s deployment minimizes any risks posed to the DAO by safety or liveness failures.
- All cross-chain governance messages sent thus far have been in service of turning on the 1bps fee tier on destination chains. This generally occurs after those chains have achieved a considerable amount of liquidity and sustained trading activity. Right now it is unlikely that the DAO would need to turn on 1bp fee tier for the foreseeable future.
- LayerZero is imminently upgrading its oracle and relayer sets in a way that is the Committee believes will be very likely to satisfy the Committee’s concerns about its safety and liveness assurances. The Foundation has been in close contact with the LayerZero team and stressed the importance of these upgrades. When those upgrades have been in production for three months, the Foundation will make a grant to members of the committee to evaluate their performance.
- The Foundation will post further updates on this topic in a new thread. If the Committee has not started evaluating the new oracle and relayer set by October 1, 2023, the Foundation reserves the right to revoke this recommendation.
The Celo deployment of the Uniswap Protocol is currently connected to the mainnet governance contracts via Optics. The Optics bridge is not currently approved by the Committee and is not on a path to be approved. To that end, the Foundation is working with the Celo team to put forward a governance proposal to change the ownership of the Celo UniswapV3Factory contract from the Optics bridge receiver contract to the receiver contract of one of the bridges currently approved for the Uniswap DAO’s cross-chain governance use case. A forum post on this topic will go up in the next two weeks.