Uniswap v2 goes live on Arbitrum, Polygon, Optimism, Base, BSC and Avalanche

Uniswap, the Smart Contract-based decentralized cryptocurrency exchange (DEX), has announced the implementation of its v2 protocol on six new chains. According to a post on X, the implementations would allow users to perform functions directly on those chains through the protocol’s interface. The chains mentioned include Arbitrum, Polygon, Optimism, Base, Binance Smart Chain (BSC) and Avalanche.

Explaining the impact of the recent implementation, Unsiwap noted that the new development will provide simpler experiences for liquidity pools (LPs) based on users’ requests. The project compared the simplicity of v2 to the more complex v3, which offers more advanced capabilities for more active LPs.

Meanwhile, Uniswap emphasized that v2 pools cover the entire price range by default. Therefore, fewer decisions are made in advance and the need for active ‘Liquidity Pooling’ is minimized. Additionally, Uniswap noted that it is cheaper to deploy new pools on v2 due to its cost-efficiency in terms of gas costs. In particular, the gas costs for adding liquidity are usually much lower.

While Uniswap v3 allows users to save gas when trading on non-Ethereum chains, doing the same on v2 would be comparatively cheaper, according to Uniswap. Likewise, v2 users will benefit from virtually no maximum extractable value (MEV) on Layer-2 networks, a process that Uniswap considers useful for exchanging long-term assets.

Similarly, Uniswap highlighted the security benefit of deploying v2 on the mentioned chains. The exchange noted that it would limit losses incurred due to v2 fork exploits, bugs and rug pulls. The platform added that the ecosystem has reportedly lost more than $55 million from such risks in the past year. It highlighted that an official v2 implementation through the Uniswap interface will provide a secure place to exchange digital assets.