UniSwap, the largest decentralized exchange on the Ethereum network, is taking a leap of epic proportions.
Over the years, the decentralized exchange has spread to various networks, supporting the creation of liquidity pools on multiple chains, gaining market share.
If it already seemed unstoppable, $UNI is about to surpass itself.
This was confirmed by the development team behind the protocol on Thursday through its official channels:
UniSwap will launch its own layer 2 blockchain on Ethereum: "UNICHAIN".
Join me throughout this article to understand what the implications will be and what investment opportunities this huge news offers us.
Let's start at the beginning.
UniSwap started out like any other decentralized exchange on the market, but over the years it has not stopped investing in development and infrastructure, managing to position itself as one of the largest, with the highest daily trading volume.
UNI, its governance token, is a reflection of its success, having a total capitalization of almost 5 billion dollars, a remarkable milestone for a governance token.
Without further ado, yesterday Thursday, October 10, it surprised the market by announcing the creation of its own Layer 2 network called "UNICHAIN" on the Ethereum mainnet.
What does it entail?
First of all, your UNI token will have greater utility.
Secondly, it manages to enter an area that remains a trend for big capital.
Finally, users will have great opportunities to make profits.
Let's break it down by points.
The UNI token currently serves as a reward on the main platform, as well as a governance token to define future upgrades.
With the implementation of a layer 2, this token will have more functions: It could be used as a gas fee to pay for transactions but, fundamentally, as a staking token to create validator nodes.
This dramatically increases demand, limits circulation by staking, and consequently increases price.
Additional note:
Let's not forget that it is the main swap of Ethereum and as I mentioned in this article On the future of UNI as the main network grows, its price will follow it.
Dabble in leayer 2
It was a surprise to us, but according to some sources, it is a project that has been in development for years.
We can trust them, since, as announced by the UNI team, the TESNET network is currently operational, the mainet is expected to be operational in November and the network will be fully operational by the end of the year.
The network is also based on OP STACK, an open source set created by Optimism, which will allow it to form what they call a "super chain", that is, a set of networks with interoperability to facilitate transactions between them.
At the user level, what opportunities do we have?
The first big opportunity, as I shared in my article some time ago, is to have a small percentage of UNI in our portfolio. As long as it fits our investment strategy, calculating the risks.
But the biggest opportunity is to be part of the current testnet:
UNICHAIN has created its own dissemination channel on X (formerly Twitter) and a new website from where we can access it.
Note: For Binance policy reasons, I cannot share these links, but you can find them by going to Coinmarketcap or coingecko, searching for UNI, clicking on the web and networks, and find them without risk of falling for scams.
Why should you use the testnet?
First because it's free.
Second, it's very common for testers to receive very generous airdrops and it doesn't hurt to try.
Third, because UNI provides and facilitates all the tools:
On their website they have their own app (web wallet 3) to interact with the protocol.
They provide detailed beginner's guides to setting up and using the testnet.
And even better, you will learn to interact with testnets, because tomorrow more projects like this will come out and you will be able to participate with the knowledge.
Conclusions:
The new era of UNI is just around the corner, but that doesn't mean you should sell your house to invest.
We are going to have a few days of very strong FOMO but, as always, a correction will follow, so stay calm and wait for the best moment if you are going to invest.
Be careful with links, always use official channels, you know how to do it.
If you participate in the testnet, I hope you qualify for an airdrop.
Fortunately, ETH and UNI maintain a very similar price correlation, so if ETF and mainnet growth increases, we will have great opportunities in both.
Disclaimer: This article is for informational purposes only, please note that I am not seeking to give investment advice. If you trade and buy, please conduct prior analysis and risk management.
Without further ado, Citizen Crypto says goodbye!
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