UniSwap, the most widely used decentralized exchange (DEX) on Ethereum expanded its latest improved protocol to Polygon Network (MATIC). The version launch means traders with assets bridged to Polygon Network will not need to bring them back to Ethereum to make use of UniSwap liquidity.
Polygon Network is a major hub that attracts versions of existing play to earn games, as well as new projects. Now, all users will save on fees by being able to use available UniSwap trading pairs.
UNI Attempts Price Recovery
The UNI market price is close to a weekly high, standing around $16.60. But UNI is yet to regain previous highs, especially the May peak above $43.
UniSwap has been affected by peaking Ethereum gas fees, which made retail traders give up on using DeFi, or being conservative about it.
The news of the UniSwap launch barely swayed the MATIC market price. MATIC remained around $2.60, a relatively low per unit price, offering a relatively accessible tool for DeFi fees.
UniSwap V3 Absorbs Trading Volumes
The UniSwap DEX existed in several iterations, improving on its liquidity equation to smooth out price moves.
The UniSwap V3 vaults and liquidity pairs achieve $1.5B in daily reported volumes. USD Coin (USDC) is the most widely used stablecoin on the network, with the potential to move to the Polygon protocol.
Most activity in DeFi has moved to UniSwap V3, with the older iteration V2, only carrying around $387M in daily trades.
The exchange manages to provide liquidity for relatively large swaps, especially for the more widely used assets.
Polygon Hosts Multiple DEX
Polygon, with $5.2B in notional value locked in the protocol, is also hosting a version of Sushi Swap, one of the popular exchanges on Ethereum, as well as the older Balancer algorithmic trading hub. Ape Swap, another DEX with significant usage from play to earn projects, also hosts one of its versions on Polygon.
The Polygon protocol hosts multiple smaller games, but also actively grows its ecosystem with growth grants.
The availability of multiple DEX means cashing out play to earn rewards may be even easier.