3 - 6 minute read
China’s Conflux Network has proposed deploying the Uniswap v3 on its regulatory-compliant and public blockchain network, according to a proposal on Uniswap’s governance forum on April 7. This move comes days after the Uniswap v3 code license expired, enabling developers to fork the protocol and deploy their own decentralized exchange (DEX).
The move would provide “access to millions of potential new users, particularly in the Chinese and Asian markets,” Conflux said in the proposal. The deployment would also enable incentives for projects that build on top of Uniswap v3 on the Conflux Network, such as the creation of liquidity pools worth $2 million that would be locked for two years. Additionally, Conflux Foundation would provide $1 million in “liquidity incentives.”
“Currently, 84% of worldwide blockchain applications are submitted in China. Compared to the UK and the US, 11% and 14% […] This shows that China is one of the most mature markets in Web3, and exposure is important for all projects,” said Conflux in the proposal. The network has a market capitalization of nearly $1 billion and $45 million in total value locked (TVL) on-chain.
An #RFC (Request for Comments) regarding the deployment of @Uniswap V3 on Conflux #eSpace has been submitted on Uniswap’s governance forum.— Conflux Network Official (@Conflux_Network) April 7, 2023
We welcome everyone to join the discussion!
Read the full proposal and discuss here: https://t.co/3QaeDGI2XP pic.twitter.com/Ar8sWSGnvG
Regulatory crackdowns in the United States and Europe could benefit the crypto industry’s growth in Asian markets, notes Conflux, with over 80 crypto companies planning to establish an office in Hong Kong and provide a crypto bridge to mainland China. Commenting on the matter, Ambre Soubiran, CEO of institutional crypto market data provider Kaiko, said, “The U.S. being more stringent these days than ever on crypto and Hong Kong regulating in a more favorable way […] is going to clearly shift the center of gravity of crypto assets trading and investments more towards Hong Kong.”
The Conflux Network is a layer-1 blockchain operating on a hybrid proof-of-work and proof-of-stake mechanism. In a recent move, the network announced a partnership with China Telecom to develop a blockchain SIM (BSIM) card. The BSIM aims to offer a secure place to store digital private keys and will allow users to check for transaction information and status progress in real-time.
What does this mean for traders?
The deployment of Uniswap v3 on Conflux Network should provide benefits for both Conflux and its users. The move could expand the network’s reach and enable users in Chinese and Asian markets to access new liquidity pools, increasing potential trading opportunities. Additionally, the incentives provided by Conflux Foundation could stimulate more usage of the network and improve liquidity in CFX pairs.
On the other hand, traders should be aware of the regulatory environment in the broader crypto industry as it could impact investment and asset trading. While regulatory crackdowns in the US and Europe may shift the center of gravity more towards Hong Kong, emerging markets could also be impacted by the same regulatory pressures. Hence, traders should keep a watchful eye on the regulatory landscape and assess the potential impact on their investment strategies.
The deployment of Uniswap v3 on Conflux Network could potentially enhance trading opportunities and liquidity for CFX pairs. However, traders should remain cautious and vigilant towards the broader regulatory environment that may affect investment strategies.