Uniswap (UNI), a decentralized protocol, is ready to roll out the third version of its platform. The protocol aims to provide a suitable platform where users can seamlessly swap ERC-20 tokens without using an order book.

For the v3 launch, the protocol carried out a ‘temperature test’ for a possible blockchain to use. The proposal was for deploying Uniswap v3 on the Binance Smart Chain (BNB) instead of the Ethereum blockchain. The proposal got the UNI community voting on its government forum using their UNI tokens.

Surprisingly, about 80% of the UNI holders supported the Uniswap v3 deployment on the BNB Chain, Ethereum’s rival. Unfortunately, this left a smaller percentage of votes for the Ethereum blockchain, making it lose the temperature check proposal.

We’re excited to share that our @0xPlasma proposal to deploy @Uniswap v3 on @BNBCHAIN has passed the “Temperature Check” with 20M votes “YES” and 6,495 $UNI voters (the biggest number for the whole Uniswap Governance History).
Moving forward to the final “Governance Proposal” pic.twitter.com/HoIJgY8mX1

— 0xPlasma Labs: DeFi & NFT Metaverse (@0xPlasma) January 22, 2023

0xPlasma Labs, a decentralized finance protocol, contributes to the proposal. According to the post on Twitter, the firm noted that the “Temperature Check” on the proposal got 20 million votes for ‘YES.’ In addition, the supporting votes came from 6,495 $UNI voters, the most significant voting numbers in the history of Uniswap’s Governance system.

0xPlasma Labs’ CEO Lists Benefits of Deploying Uniswap V3 on BNB Chain

Recently, the CEO of 0xPlasma Labs, Ilia Maksimenka, wrote a proposal for deploying the Uniswap v3 protocol. The CEO lined his argument on the benefits of deploying the new v3 protocol on the BNB Chain.

Maksimenka cited the License expiration of Uniswap as one of the reasons for choosing BNB Chain. Also, he mentioned that the chain has many packages that would help boost Uniswap’s popularity in the DeFi space. Some include high transactions, low fees, staking opportunities, cross-chain support, etc.

Also, the CEO acknowledged that Binance had acquired a global presence, being rated as the largest crypto exchange in the world. Hence, as a strong brand, using the BNB Chain will fast-forward the awareness and adoption of the v3 version globally for Uniswap.

The Proposal Gets Support

The proposal has received support from other firms and crypto participants. For example, ConsenSys, a blockchain software company behind one of Ethereum’s most important clients, is optimistic about the deployment move.

The DAO governance strategist at ConsenSys, Cameron O’Donnell, revealed the company’s stance. First, the firm noted the need for Uniswap to be agnostic in its service to users, especially in the Web3 space, even with its license expiration in April. 

Hence, O’Donnell maintained that existing and future platform users would enjoy a secured and robust platform for decentralized exchange through the BSC market. Other supporting comments came from Brian-Armstrong, CEO at Coinbase, and Modong also optimistic about the deployment of Uniswap v3 on BNB Chain.

The Plasma Finance team started its operation after the Uniswap governance community approved the proposal. The team noted that it could take five to eight weeks to deploy all the relevant Uniswap smart contracts to the BNB Chain.

The price performance of UNI was entirely on the positive lane over the past 30 days. The token gained over 28% in the past month and has shown a slight increase of 0.38% in the past seven days.

But at the time of writing, UNI is trading at $6.60, indicating a drop within the past 24 hours.

Featured Image From CityAM, Charts From Tradingview

Tron’s USDD stablecoin fell below $0.97 today, and founder Justin Sun has tried to reassure users by saying that he is “deploying more capital” to defend the peg.

Tron’s USDD Stablecoin Depegs To Lowest Value Since June 2022

Tron’s Decentralized USD (USDD), which had already been struggling with its peg this last month as it stayed below $1, has observed further destabilization today as it touched lows not seen since June.

Below is a chart that shows the trend in the stablecoin’s price (against USD) over the last 24 hours:

Looks like the price of the coin has jumped back up following the decline | Source: USDDUSD on TradingView

As the above graph shows, USDD declined to as low as below $0.97 earlier in the day, but has since seen some recovery to around $0.977.

Justin Sun, the founder of TRON, has come forth and tried to reassure users by pointing out that the stablecoin is secured by a collateral ratio of more than 200%.

Additionally, Sun also informed users that he is “deploying more capital” to defend the peg.

Deploying more capital – steady lads https://t.co/55pra5wQMi https://t.co/CexyaBy2hx

— H.E. Justin Sun (@justinsuntron) December 12, 2022

Before the Tron founder added these extra deposits, the collateral ratio of the stablecoin was around 200.71%. Now, the crypto has become even further overcollateralized as the ratio has improved to 200.88%.

The overcollateralization of the decentralized USD stablecoin | Source: USDD.io

While USDD seems to have stopped from further depegging for now, it’s still unclear whether the coin will be able to regain $1 anytime soon.

Since the collapse of the crypto exchange FTX, the stablecoin hasn’t been able to stabilize its peg. Other stables also saw turbulence from the crash, but the depegging was only temporary in their case, as they were back up quickly enough.

Decentralized USD is a stablecoin issued by the TRON DAO reserve, and is collateralized by the organization using multiple assets like Bitcoin, Tron, and USDT.

The crypto’s model is similar to Terra USD (UST), a stablecoin that lost its peg and collapsed back in May of this year (an event that would kick off a market-wide crash).

After USDD slipped further away from its $1 peg today, there have been speculations in the crypto community on whether the stablecoin is heading towards a similar fate to UST.

If USDD does indeed end up following the path of UST, the domino effect on the market from its collapse is unlikely to be on the same level as Terra USD’s, given that the market cap of USDD is currently nowhere near what UST was just before it went down.