China's only regulatory-compliant public blockchain, Conflux, has submitted a proposal to deploy Uniswap v3 on its network, following the expiration of the Uniswap v3 code license.
This move aims to bring the popular decentralized exchange to the Chinese and broader Asian markets, tapping into a new user base and taking advantage of the region's robust growth in the crypto industry.
has experienced substantial growth in the first quarter of 2023, with its market capitalization nearing $1 billion and a total value locked on-chain of $45 million. The proposal emphasizes China's dominant position in the global blockchain landscape, as 84% of blockchain applications worldwide are submitted in the country, compared to 11% in the United Kingdom and 14% in the United States.
The deployment of Uniswap v3 on Conflux would benefit from the mature Web3 market in China, which has seen a surge in interest and adoption in recent years. Blockchain technology and cryptocurrencies have become increasingly popular in the region, with a growing number of projects and companies exploring various .
At the same time, regulatory crackdowns in the United States and Europe are pushing more crypto companies to seek opportunities in Asian markets. , in particular, has emerged as a preferred destination, with over 80 crypto firms planning to establish offices there. This strategic positioning provides a bridge to mainland China and facilitates the growth of the crypto industry in the region.
Ambre Soubiran, CEO of institutional crypto market data provider Kaiko, believes that Hong Kong's more favorable regulations, combined with the United States' increasingly stringent stance on crypto, will shift the center of gravity for crypto assets trading and investments towards Hong Kong.
To encourage projects to build on Uniswap v3 using the Conflux Network, the proposal outlines several incentives. These include the creation of $2 million worth of liquidity pools for $CFX token trading pairs such as CFX-USDT, CFX-BTC, and CFX-ETH. The pools will be locked for two years, ensuring stability and support for these trading pairs. The Conflux Foundation will also provide an additional $1 million in "liquidity incentives" to further encourage adoption and development.
The Conflux Network, a layer-1 blockchain that employs a hybrid proof-of-work and proof-of-stake mechanism, has also recently announced a . The collaboration aims to develop a blockchain SIM (BSIM) card, which will offer users a secure location to store digital private keys. The stored signature can be used to transfer money to other users, while a "one-click direct check" feature will enable users to access transaction information and status progress in real time.
By deploying Uniswap v3 on Conflux, the popular decentralized exchange could tap into the thriving Chinese market and cater to a rapidly growing user base in the region. This expansion would not only benefit Uniswap v3 but also further solidify Conflux's position as a leading blockchain network in China.
As the Conflux Network and Uniswap v3 continue to make strides in the crypto industry, their collaboration could prove to be a game-changer for the Chinese and broader Asian markets, fostering greater innovation and adoption of Web3 technologies.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.