Why Uniswap, liquidity providers and $UNI holders should care about Fantom
In my previous article, I have shown why transaction fees on Uniswap are so damn high, and how the same platform on the Fantom Opera mainnet would decrease the transaction fees significantly.
I made the following observations:
- If I would have made all my trades in 2020 on a decentralized platform like Uniswap, it would have cost me roughly 18.8932 ETH in transaction fees (with today’s fees), which is rougly 25.500$
- If I would have made all my trades in 2020 on a decentralized platform like Uniswap, but which is built on Fantom Opera mainnet, it would have cost me at top 10 FTM in transaction fees, which is rougly. 4$. Let us assume that by then, the price will increase by 10x, which increase the transaction costs to 40$.
Why should Uniswap care?
Honestly, it is really easy: High ETH transaction costs prevent people from trading more on Uniswap. Less transactions mean less fees for liquidity providers and less protocol fees (when they are implemented).
- Ethereum is the cockblock for Uniswap
- Uniswap wants to drive 200mp/h through a beautiful Scottish landscape, but Ethereum activated the hand brake
- Uniswap, a 14-year old teenager, wants to attract its female school mates, but Ethereum gave it acne
- Uniswap wants to tell everyone an interesting story, but Ethereum sings “Despacito” with Justin Bieber as loud as possible
Fees, at the moment estimated 2.7m$ for the last 24 hours, are literally flushed down the drain and the only one profiting from Uniswap big time are ETH miners.
Uniswap on Fantom Opera mainnet would decrease those transaction fees significantly:
- Traders have more money to trade with, more capital to invest
- Liquidity providers are facing a higher volume of trades, and thereby higher profits
- Uniswap has higher protocol fees (when they are implemented).
It’s not so difficult. Building Uniswap on Fantom would be a win-win-win for every party involved — expect ETH miners. Fuck them.