According to Cointelegraph, Uniswap's new layer 2 blockchain, Unichain, could significantly benefit Uniswap Labs and holders of the project's token, potentially generating close to $500 million annually from fees that would have otherwise gone to the Ethereum network.
Unichain's launch is expected to redirect $368 million, previously paid to Ethereum validators over the past year, directly to Uniswap Labs and likely Uniswap (UNI) tokenholders, according to DeFi Report founder Michael Nadeau in an Oct. 13 X post. Additionally, Uniswap Labs will capture all Maximum Extractable Value (MEV) on Unichain, as it owns all validators on the network, preventing Ethereum validators from extracting MEV. Nadeau estimated that MEV accounts for about 10% of total fees paid on Uniswap, amounting to $100 million over the last year, and suggested that some of this could be shared with token holders.
Nadeau also noted that Uniswap's liquidity providers could benefit from the new blockchain by participating in settlement and MEV capture through staking. However, Ethereum validators and Ether (ETH) token holders are expected to lose out following Unichain's launch, with less burned ETH and fewer fees returning to the blockchain.
Over the past year, Uniswap has generated over $1.3 billion in trading and settlement fees across five primary chains, including Ethereum, Optimism, BNB Chain, Base, and Polygon. Uniswap, the largest decentralized exchange by volume, launched Unichain on Oct. 10, promising faster, cheaper transactions and improved interoperability across various blockchain networks.
The launch received mixed reactions from decentralized finance (DeFi) experts. Some argued that another layer 2 blockchain was unnecessary, while advocates claimed that Unichain, designed specifically for DeFi protocols, would offer a cleaner user experience, more concentrated liquidity, and fewer issues with fragmentation across various chains. Skeptics pointed to a September 2022 X post from Ethereum co-founder Vitalik Buterin, who criticized the idea of a layer 2 blockchain from Uniswap, stating that Uniswap's main value proposition is its simplicity and ease of use, which might be compromised by the introduction of a dedicated chain.
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