Uniswap on Layer 2s

    In November 2018, Uniswap introduced its V1 contract on the Ethereum mainnet. Fast forward five years, and the protocol has undergone significant growth, consistently innovating with each new version release. What's noteworthy is that the protocol has expanded its presence to numerous other blockchains, contributing to a substantial increase in users, trading volume, swap frequency, and Total Value Locked (TVL). This dashboard aims to delve into Uniswap activity on Layer 2 networks, offering a comparative analysis of Uniswap's performance across these diverse blockchain ecosystems.

    What Is Uniswap?
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    Methodology

    To ensure precision and specificity in our analysis, we have utilized Flipside data, concentrating on the schemas of Arbitrum, Optimism, Binance Smart Chain (BSC), Polygon, and Avalanche. This approach has been adopted to delineate and illustrate the performance metrics of these networks accurately.

    Furthermore, our investigative approach encompasses a dual perspective concerning Uniswap. In the first instance, we aggregate statistics from all Layer 2 (L2) networks associated with Uniswap, providing a holistic view of the platform's collective performance. In the second approach, we segregate and examine each L2 network individually, aiming to discern and highlight the nuanced variations in performance across different networks. This comparative analysis allows us to identify the networks exhibiting superior performance and those with comparatively lesser performance.

    The overarching goal of this dashboard is to execute a comprehensive examination of Uniswap's operational dynamics across diverse Layer 2 environments. This involves a meticulous analysis of data sourced from a range of networks, namely Arbitrum, Optimism, Polygon, Binance Smart Chain (BSC), and the Avalanche network. The intent is to furnish stakeholders with an exhaustive and detailed overview of the multifaceted activities occurring within the Uniswap platform, offering valuable insights into the distinctive performance metrics across various Layer 2 ecosystems.

    Uniswap was one of the first decentralized finance (or DeFi) applications to gain significant traction on Ethereum — launching in November 2018. Since then, numerous other decentralized exchanges have launched (including Curve, SushiSwap, and Balancer), but Uniswap is currently the most popular by a significant margin.

    Uniswap pioneered the Automated Market Maker model, in which users supply Ethereum tokens to Uniswap “liquidity pools” and algorithms set market prices (as opposed to order books, which match bids and asks on a centralized exchange like Coinbase) based on supply and demand.

    By supplying tokens to Uniswap liquidity pools, users can earn rewards while enabling peer-to-peer trading. Anyone, anywhere, can supply tokens to liquidity pools, trade tokens, or even create and list their own tokens (using Ethereum’s ERC-20 protocol). There are currently hundreds of tokens available on Uniswap, and some of the most popular trading pairs are stablecoins like USDC and Wrapped Bitcoin (WBTC).

    Some of the potential advantages of decentralized exchanges like Uniswap include:

    • Safe: Funds are never transferred to any third party or generally subject to counterparty risk (i.e. trusting your assets with a custodian) because both parties are trading directly from their own wallets.

    • Global and permissionless: There is no concept of borders, or restrictions on who can trade. Anyone with a smartphone and an internet connection can participate.

    • Ease of use and pseudonymous: No account signup or personal details are required.

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