UNI jumps 11% as Uniswap debuts its own layer-2 solution Unichain

Decentralized exchange Uniswap has entered the layer-2 solution landscape with its new initiative to “accelerate Ethereum’s scaling roadmap.”

Uniswap, one of the largest decentralized exchanges by trading volume, introduced Unichain, a new open-source Ethereum-based layer-2 network designed to increase transaction speed, reduce costs, and increase liquidity across decentralized finance.

Introduction @unichain — A new L2 designed for DeFi ✨

Fast blocks (250 ms), cross-chain interoperability and decentralized validator network

Designed to be the home of cross-chain liquidity pic.twitter.com/lqfJh6Ltio

— Uniswap Labs 🦄 (@Uniswap) October 10, 2024

In a press release shared with crypto.news on October 10, Uniswap Labs stated that the product, powered by Optimism Superchain, aims to address scalability challenges that have hindered wider adoption of Ethereum.

“After years of building and scaling defi products, we have seen where blockchains need to improve and what is needed to continue improving Ethereum’s roadmap.”

Hayden Adams, CEO of Uniswap Labs

Adams added that Unichain will offer the speed and cost savings that other competitors in the layer-2 space already provide “but with better access to cross-chain liquidity and greater decentralization.”

Uniswap will launch Unichain mainnet in late 2024

According to the technical description of the network, Unichain will initially have one-second block times and optimization of up to 200-250 milliseconds is targeted, although the timeline for this improvement remains unclear.

Additionally, Unichain aims to focus on cross-chain interoperability by facilitating liquidity access across various layer-2 networks on Optimism and beyond. It also plans to implement the proposed ERC-7683 standard for advanced transaction support across all blockchains.

With the private testnet now live and the launch of a public mainnet on the horizon, it remains unclear whether Uniswap Labs will offer a separate token for the network. Following this announcement, (UNI) price increased by 11% to $8.05.