- Uniswap’s move to Unichain will benefit UNI token holders.
- Uniswap Labs and liquidity providers are also going to benefit.
- Ethereum validators will lose a huge chunk of the fees they receive from Uniswap.
Uniswap, a leading decentralized crypto exchange (DEX), is moving to Unichain later this year. This shift will bring major changes to the platform and create value for holders of UNI, the DEX’s native token.
Michael Nadeau, founder of The DeFi Report, took to X to explain how this move to Unichain—the DEX’s new Layer 2 solution within the OP Superchain—will affect UNI holders, validators, and others involved with the DEX.
Nadeau pointed out that Uniswap generated $1.3 billion in trading and settlement fees over the past year, but the protocol and token holders didn’t get to keep all of that value. 100% of the revenue went to liquidity providers, Ethereum validators, MEV bots, and Layer 2 sequencers.
Winners of the Move to Unichain
The biggest change will be for Ethereum validators, who currently receive $368 million for their services. After the move, UNI token holders and Uniswap Labs will capture more of the value they generate.
Additionally, Nadeau highlighted that, along with Ethereum settlement fees, Uniswap will be able to keep MEV fees because they will own the validators on Unichain. MEV fees currently make up 10% of the total fees ($100 million over the past year). The protocol will have the option to share these gains with UNI token holders.
Finally, while talking about liquidity providers, Nadeau said:
“LPs will continue to receive 100% of trading fees, and may be able to participate in settlement & MEV as well once Unichain is live.”
Losers in the Shift to Unichain
Nadeau also explained that while Uniswap Labs, UNI token holders, LPs, and Optimism stand to gain a lot from the move to Unichain, Ethereum validators and ETH token holders will lose a big chunk of the $368 million in settlement fees that currently come from Uniswap.
Moreover, Arbitrum and Base sequencers will also lose settlement fees and MEV to Unichain. Nadeau said that Uniswap is aiming to “control more of the value they are creating through their interface and smart contracts.”
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