Author: Haotian-CryptoInsight
How to view the upcoming launch of DeFi-dedicated layer2—Unichain by @Uniswap? I see that the public opinion is in an uproar, and it is again interpreted as the "defection" of the leading DeFi application from the Ethereum mainnet. Previously, when dYdX built an independent application chain and MakerDAO referred to its Endgame as a NewChain, it also sparked heated discussions.
In fact, Uniswap's independent chain plan cannot be considered a defection, but rather a catalyst for boosting Ethereum layer2. Why? Next, let me share my views:
1) dYdX based on the Cosmos IBC architecture built an independent chain, and MakerDAO intended to get close to Solana to build an independent chain. The nature is similar, both being constrained 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 even if the layer2 chain is scaled off-chain, it is still limited by the processing capability of the Rollup contract on the mainnet. Therefore, dYdX and MakerDAO ultimately chose to build independent consensus chains. I have previously written an article to systematically analyze the reasons.
Uniswap has been formulating 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 the gene of a phenomenal application like Uniswap will become a catalyst to break the current development bottleneck of layer2.
On the one hand, Unichain is a layer2 chain dedicated to expanding DeFi, which will greatly benefit the current development of the Ethereum layer2 market for DeFi, because the current layer2 chains of the OP-Rollup and ZK-Rollup camps have not yet stimulated the vitality of DeFi applications.
Lending is hampered by the lack of trust in non-native Token pledges, and DEXes are constrained by scattered liquidity and users, and derivatives, except for individual platforms like GMX, have not seen an overall layer2 chain environment friendly to the development of the DeFi ecosystem.
The emerging layer2 @MetisL2 is trying to build a layer2 independent 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 accounts for more than 60% of the transaction volume on the Ethereum mainnet, is jumping out to build a DeFi-specific layer2 chain, it is hard not to have high 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 some niche and specific applications.
A giant application like Uniswap building a layer2 chain has a greater commercial imagination space, and there is no need to build on top of other layer2s.
Of course, building a layer3 might be able to issue a new Gas Token, but building a layer2 chain can empower the $UNI Token with strong governance, and will also bring vitality to the dormant layer2 market of @arbitrum, @Starknet and others, and can 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 secure consensus protection for Unichain's 1-second block generation and 250-millisecond sub-blocks, as well as the newly introduced 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 brand new layer2 staking and reward security consensus Token, this role transformation is very unusual;
2. It will introduce the upgrade content of the EIP-7683 proposal, proposing the "cross-chain intent" standard, providing a universal interface for the cross-chain transaction execution system.
In simple terms, it defines the standard of cross-chain order information, including who wants to trade, what to trade, trade deadline, etc., and after the unified framework, different chains can collaborate to process the same order.
Obviously, the Unichain chain will make a big deal about the issue of cross-chain operability, and by leveraging Uniswap's huge user base and liquidity suction effect, Unichain will inevitably 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 will be affected after the launch of Unichain, I personally think it will not. After all, Uniswap labs' business layout and the development of the Uniswap open-source decentralized protocol have actually been "parallel" all along, 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, ultimately boosting the overall weight of the layer2 market.
Currently, with the influence of the Uniswap wallet and brand effect, Unichain's new launch will have an early-mover advantage in terms of application prosperity and user activity. If the Uniswap suction effect is prominent in the future, it will inevitably cause most users and traffic to settle on the layer2, which will also complete the Rollup-centric strategic vision of the entire Ethereum.
That's all.
Finally, I would like to emphasize again that 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 Unichain has any meaning, it depends on the perspective from which it is judged. From a pure application perspective, @VitalikButerin is right that it has no meaning, but from a business strategy perspective, Uniswap's ambition to do more than just an application has long been known, and no matter what it does, as long as it is within Ethereum's roadmap, it will be mutually beneficial.
