Ad

Uniswap integrates Blast Network, faster swaps and native yield for ETH and USDB

By:
on Apr 2, 2024
Listen
  • Uniswap integrates with Blast network, offering faster swaps and native yield for ETH and USDB.
  • Liquidity providers can choose between Uniswap v2 and v3 on Blast, with native yield exclusive to v2 pools.
  • Uniswap recommends using v2 for rebasing tokens on Blast to mitigate risks associated with negative rebasing.

Follow Invezz on Telegram, Twitter, and Google News for instant updates >

Uniswap, a leading decentralized exchange protocol, has made a significant move by integrating with the Blast network.

Are you looking for signals & alerts from pro-traders? Sign-up to Invezz Signals™ for FREE. Takes 2 mins.

This integration allows users to access faster and more cost-effective swaps and liquidity provisions while introducing native yield for Ethereum (ETH) and the USDB stablecoin.

How do users benefit from Uniswap integrating with Blast?

Copy link to section

Well, Uniswap users now have the opportunity to leverage the advantages of the Blast network directly through the Uniswap interface.

By selecting Blast as their network, users can experience reduced gas costs and quicker transaction speeds compared to the Ethereum mainnet. This integration marks a notable milestone as it enables Uniswap users to earn native yield on their LP positions for the first time, thanks to Blast’s rebasing functionality.

For liquidity providers (LPs), accessing Blast via Uniswap opens up new possibilities.

LPs can choose between Uniswap v2 and v3 when providing liquidity on the Blast network. Those participating in pools involving USDB or WETH tokens have the opportunity to earn native yield, mirroring the experience of holding these tokens in a Blast wallet.

However, it’s crucial to note that native yield is exclusive to v2 pools, as v3 pools on Blast do not support native yield due to technical constraints related to concentrated liquidity.

Liquidity providers engaging with rebasing tokens on Blast should carefully consider the associated risks, particularly concerning negative rebasing.

Blast’s native rebasing mechanism introduces new complexities, and Uniswap recommends using Uniswap v2 instead of v3 to provide liquidity in such cases. This strategic approach helps mitigate risks and ensures a smoother LP experience on the Blast network.

As Uniswap continues to expand its footprint across various blockchain networks, the integration with Blast underscores its commitment to offering users enhanced functionality and accessibility.

With mobile app support for Blast on the horizon, users can look forward to seamless swapping experiences on the go.

UNI price reaction

Copy link to section

Astonishingly, Uniswap’s native token, UNI, reacted to the development with an 11% price drop adding to the general bearish trend that has driven the token from a high of $13.28 on March 31 to $11.35 at press time on April 2.

UNI price chart

The sudden plunge has resulted in whales transferring huge amounts of UNI tokens to exchanges as they prepare to swap them for other tokens or even convert to fiat to avoid making losses if the bear trend continues.

For example, according to information on Etherscan, address 0x08…CDA3 today transferred 1.6 million UNI, originally unlocked from the Uniswap treasury in September 2020, to Coinbase Prime, and Arkham tagged Max Blaushild, a suspected former Coinbase senior software engineer.

Ad

Want easy-to-follow crypto, forex & stock trading signals? Make trading simple by copying our team of pro-traders. Consistent results. Sign-up today at Invezz Signals.

Learn more
Uniswap Altcoins Crypto