In a significant development alongside its governance initiatives, Uniswap Labs, the original developer of the Uniswap decentralized exchange (DEX), has launched UniChain, its own layer 2 (L2) blockchain. This move follows a trend of DeFi platforms launching their own chains, as seen with Ondo Finance’s recent layer 1 blockchain launch. This fragmentation reflects both profit motives in traditional finance (TradFi) and tokenomics-driven strategies in DeFi.
UniChain aims to provide lower transaction costs compared to the Ethereum mainnet, addressing a key need for Uniswap users who already engage in smaller transactions on 11 other L2 chains. Despite this, Ethereum still holds the largest total value locked (TVL) for Uniswap, emphasizing the importance of liquidity.
Meanwhile, the Uniswap Decentralized Autonomous Organization (DAO) has approved the continuation of its “Delegate Reward Initiative,” allocating an additional $540,000 in UNI tokens to fund the program’s third cycle. This initiative aims to incentivize active participation in Uniswap governance by compensating top-performing delegates with UNI tokens.
The program, which was first proposed by StableLab in February 2024 and implemented in June, rewards individuals or entities who vote on behalf of UNI token holders. The third cycle will expand the program to 15 delegates, up from 12 in the previous cycle, and will introduce a new “points system” based on objective indicators like voting participation, proposal writing, and community engagement.
Delegates can earn up to $3,000 worth of UNI tokens per month by maintaining at least an 80% voting participation rate. An additional $3,000 is offered for writing “vote rationales.” The governance vote, held from February 26 to March 4, 2025, passed with 99.45% approval, indicating strong community support.
The program’s success in the first cycle, which saw 100% voting participation from selected delegates and the addition of new participants, has driven the expansion. The goal is to improve the quality and engagement of Uniswap governance, which has faced challenges like low participation rates and contentious proposals, notably the “fee switch” proposal.
The third cycle proposal is currently in the “queue” for execution, with the specific date to be determined later. Active delegates like FranklinDAO, Michigan Blockchain, and Wintermute Governance, as well as inactive former delegates, showed significant support for the program. The initiative aims to create a more dynamic and responsive protocol by encouraging active and informed participation in its governance.
“Unichain is built differently,” said Hayden Adams, Founder and CEO of Uniswap Labs. “We’re here to make DeFi faster, cheaper, more decentralized, which is why we launched Unichain to be permissionless from day one.”
UniChain is designed to be more decentralized from its inception, although it will initially operate as a Stage 1 rollup using the Optimism Superchain to mitigate potential risks. This L2 chain will also enable Uniswap to introduce new features, including Flashbots TEE, further enhancing its functionality and user experience. The launch of UniChain signifies Uniswap’s commitment to innovation and addressing the evolving needs of the DeFi landscape.
Shogun Lin
