How to view the new Layer2 chain Unichain launched by @Uniswap? I see that the public opinion is in an uproar, and it is also interpreted as the "defection" of the leading DeFi application from Ethereum. Previously, when dYdX built an independent application chain and MakerDAO referred to its Endgame as NewChain, it also caused heated discussions.
In fact, Uniswap's independent chain plan cannot be considered as a defection, but rather a catalyst to boost Ethereum's Layer2. Why? Here are my views:
1) dYdX based on the Cosmos IBC architecture to build an independent chain, and MakerDAO intends to get close to Solana to build an independent chain. The nature is similar, both are hindered by the performance bottleneck of the Ethereum mainnet. The Gas Limit ceiling of Ethereum determines that a block can only process thousands of transactions, and the performance of Layer2 chains, even with off-chain scaling, is limited by the processing capacity of the mainnet Rollup contracts. Therefore, dYdX and MakerDAO ultimately chose independent consensus chains.
Uniswap has been developing an off-chain pre-processing and on-chain integration expansion plan since UniswapX, so even if it builds a chain, it will continue to maintain a deep connection with Ethereum and there is no "defection" characterization.
The fact that Uniswap labs announced the Unichain Layer2 chain based on the OP Stack shows the problem, after all, the Layer2 chain is still in line with Ethereum's Rollup-Centric grand strategy.
2) On the contrary, in my view, the layout of a Layer2 chain by a project with a phenomenal application gene like Uniswap will become a catalyst to break the current development dilemma of Layer2.
On the one hand, Unichain is a Layer2 chain dedicated to expanding DeFi, which is very beneficial to the current development of the Ethereum Layer2 market for DeFi. Because at present, the Layer2 chains of the OP-Rollup and ZK-Rollup camps have not stimulated the vitality of DeFi applications.
Lending is hindered by the lack of trust in non-native Token pledges, and DEXes are constrained by scattered liquidity and users that are difficult to generate synergy. Except for individual platforms like GMX, the overall Layer2 chain environment is not friendly to the development of the DeFi ecosystem.
The emerging Layer2 @MetisL2 tries to build an independent Layer2 economic system with native Tokens and a decentralized Sequencer mining mechanism, precisely to solve the problem of insufficient driving force for the development of Layer2 DeFi. However, the Tokenomics design of most Layer2s is still not friendly to DeFi.
Now, a leading player like Uniswap, which occupies more than 60% of the transaction volume on the Ethereum mainnet, is going to jump out and build a DeFi-specific Layer2 chain, it is hard not to have expectations.
On the other hand, Unichain has chosen the OP Stack super-chain camp to build a Layer2 rather than a Layer3 application chain. The difference is that Layer3 can further customize Tokens and consensus mechanisms more independently and flexibly, but Layer3 needs to rely on Layer2 chains for interoperability and component sharing, and the current narrative is not mature enough, more suitable for niche and specific applications.
A giant application like Uniswap doing a Layer2 chain has a greater commercial imagination space, and there is no need to build on top of other Layer2s.
Of course, doing Layer3 may be able to issue a new Gas Token, but building a Layer2 chain can empower the $UNI token with strong governance, and at the same time bring vitality to the dormant Layer2 market of @Arbitrum and @Starknet, and can also integrate its Uniswap Wallet, UniswapX and other series of combination products and protocols, which makes more sense than simply issuing a new Token.
3) Unichain has two core features worth mentioning:
1. It will introduce a decentralized verification network, which will add an extra layer of Finality security confirmation.
This can be considered a middleware verification network similar to Eigenlayer AVS, but it is more like a Pre-Confirmation consensus network, which can provide a layer of security consensus protection for Unichain's 1-second block generation and 250-millisecond sub-block, as well as the new TEE data privacy and MEV protection mechanisms. Most importantly, the governance token UNI will be empowered, and the verifying nodes need to pledge UNI tokens to work.
A Layer1 protocol governance token will become a new Layer2 staking and reward security consensus token, which is a very unusual role transformation.
2. It will introduce the upgrade content of the EIP-7683 proposal, proposing a "cross-chain intent" standard, providing a common interface for the cross-chain transaction execution system.
In simple terms, it defines the standard information of cross-chain orders, including who wants to trade, what to trade, and the deadline for the trade, etc. After unifying the framework, different chains can collaborate to process the same order.
Obviously, Unichain will focus on the issue of cross-chain operability, and with the huge user base and liquidity suction effect of Uniswap, Unichain is bound to attract a large number of DeFi applications to gather. If Unichain attracts a large application ecosystem, it will not be too late to judge whether the Layer2 Rollup will be falsified.
4) As for the concern of many people that the original Uniswap protocol on the Ethereum mainnet may be affected after the launch of Unichain, I personally think it will not. After all, what Uniswap labs wants to do in terms of business layout and the development of the decentralized Uniswap protocol have actually been "parallel" for a long time. Even if Unichain is launched, the original Uniswap protocol will not be affected.
If there is any impact, it is only that Unichain will compete with other Layer2s as a new Layer2, which will ultimately boost the overall weight of the Layer2 market.
Currently, Unichain, relying on the influence of the Uniswap wallet and brand effect, will have an early-mover advantage in terms of application prosperity and user activity. If the Uniswap suction effect is prominent, it is bound to make most users and traffic settle on the Layer2, which also completes the Rollup-centric strategic vision of the entire Ethereum.
In summary, Uniswap labs' layout of building a chain is definitely a boon for the Ethereum ecosystem, and I am particularly looking forward to its "catfish" effect as a disruptor entering the Layer2 market.
As for whether the Unichain chain has any meaning, it depends on the perspective from which it is evaluated. From a pure application perspective, @VitalikButerin is not wrong in saying that it has no meaning, but if it is considered from a business strategy perspective, it is well known that Uniswap's ambition goes beyond just being an application. Regardless of what is done, as long as it is within the roadmap of Ethereum, it will be mutually beneficial.
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