Deploy Uniswap V3 on BNB Chain
Description
0xPlasma Labs is submitting a Governance Proposal to deploy Uniswap v3 to BNB Chain on behalf of the Uniswap Community. The temperature check passed with 20M (80.28%) YES votes and 4.9M (19.72%) NO votes. Here is a link to the Proposal Discussion on Uniswap Governance Forum.
Proposal
This proposal will authorize 0xPlasma Labs to deploy the Uniswap v3 protocol to the BNB PoS Chain on behalf of the community. We believe this is the best moment for Uniswap v3 to deploy on BNB PoS Chain, for many reasons (one of them is License expiration).
About BNB Chain
BNB Chain is a decentralized, public blockchain that operates using a proof-of-stake (PoS) consensus mechanism. It is designed to support the development and deployment of decentralized applications (dApps) and decentralized finance (DeFi) projects and is powered by the Binance Coin (BNB) token. BNB Chain is operated by Binance, a leading cryptocurrency exchange and blockchain technology company, but is open to participation and contributions from a global community of developers, users, and stakeholders.
- BNB Chain has a large and growing user base, providing a potential new market for Uniswap v3.
- BNB Chain offers high transaction speeds and low fees, making it a suitable platform for Uniswap’s decentralized exchange services.
- Deploying to BNB Chain could help Uniswap to tap into the growing popularity of DeFi in the Binance ecosystem.
- BNB Chain offers unique features such as staking and cross-chain support that could enhance Uniswap v3’s functionality.
- BNB Chain’s strong governance model and active community could provide valuable support and feedback for the development of Uniswap v3.
- Binance, the company behind BNB Chain, has a strong track record of supporting and promoting high-quality projects, potentially providing valuable exposure for Uniswap v3.
- Binance has a global presence and a strong brand, which could help increase awareness and adoption of Uniswap v3 among retail and institutional investors.
- Binance offers a range of products and services that could be integrated with Uniswap v3, such as the Binance Smart Chain and Binance DEX.
- Deploying to BNB Chain could provide opportunities for collaboration and partnerships with other projects on the Binance ecosystem.
- BNB Chain strongly focuses on security and compliance, providing a safe and trusted environment for Uniswap v3 to operate.
- BNB Chain has a robust ecosystem of dApps and DeFi projects, providing potential opportunities for collaboration and co-development.
- BNB Chain’s support for on-chain governance could enable Uniswap v3 to adopt a more decentralized and community-driven development model.
- BNB Chain’s support for decentralized autonomous organizations (DAOs) could enable Uniswap v3 to adopt a more decentralized and community-driven business model.
- BNB Chain’s strong emphasis on community engagement and participation could provide valuable support and feedback for Uniswap v3.
- BNB Chain’s commitment to regulatory compliance could provide valuable support for Uniswap v3 as it seeks to expand into new markets and jurisdictions.
- BNB Chain’s support for tokenization and digital asset management could enable Uniswap v3 to offer new services and features for users.
- BNB Chain’s a fast-developing ecosystem of decentralized finance dapps and assets.
DeFi Llama has the overall TVL of DeFi at $49B, of which $29B is on Ethereum. The second largest is BSC at $5B. Pancake Swap has $2.35B in TVL. Dune reports BSC as having 753k weekly users. It is a significant number of users Uniswap should be pursuing.
Security & Bridges
Since the Temperature Check, we have discussed with stakeholders within the Uniswap ecosystem, who have expressed a desire to see trust-minimized bridges used for governance for the new Uniswap v3 deployment on BNB Chain. On the Governance Forum, teams presented several bridge solutions: DeBridge, Celer, Wormhole, Layer Zero. Based on the technical assessment of presented bridges by 0xPlasma Labs, GFXLabs, Uniswap Foundation and Uniswap community discussion, we've decided to move forward with another Temperature Check regarding Bridge Infrastructure for BNB Chain, where we listed all four candidates.
As a result of a very complex discussion and voting on the Snapshot, the community chose the Wormhole bridge for the Uniswap v3 deployment on BNB Chain (with 28M votes), the second place in the vote was taken by the solution from the Layer Zero team (17M votes).
Here is some major security characteristic of Wormhole bridge:
- Does the bridge support arbitrary message passing? Yes, Wormhole is one of the first and longest-serving arbitrary messaging protocols. Since launching on mainnet in August 2021, 185 million messages have been transmitted, with 2 million messages currently generated daily between asset transfers and messaging through organic usage.
- Is the bridge secured by a trusted entity, by a multi-sig, or a protocol/set of incentivized nodes? Wormhole is secured by 19 validators (aka: Guardians) who jointly attest to messages. Each message must be attested by at least 13 of the 19 Guardians. Our Guardian set comprises the leading PoS validators, including Staked, Figment, Chorus One, P2P, and more. The complete set of current validators can be found here. As mentioned above Wormhole is making significant progress in developing ZK-based light clients to facilitate completely trustless message-passing.
- Does the bridge leverage the security of the source chain (e.g. Ethereum L1) or destination chain, or is the security provided by another third-party entity? Wormhole message security waits for both consensuses to be reached on the source chain as well as additional safety features provided by the bridge. Additionally, Guardians run full nodes to protect the protocol against consensus-level exploits in the connected chains and further reduce contagion risk.
- Is it possible for a fraudulent message to be passed to the destination chain? If so, are there any recall mechanisms? All messages passing through Wormhole require a minimum of observation and signing by a majority of the Wormhole Guardian set (13 of 19). While there is currently no out-of-the-box recall mechanism for messages, a minority (7 of 19) Guardians may refuse to sign a fraudulent message and thwart an attack. Simple yet customized message recall functions can be built by individual integrators. An integrator would build “edge contracts” to introduce a time delay on message acceptance, providing an integrator with an opportunity to recall the message before it becomes effective.
- What are the ramifications of fraud to the malicious actor? Wormhole’s Guardians are leading PoS validators and some of the most respected names within the validator community. They collectively represent tens of billions in value staked and carry valuable reputations in the communities where they serve. Should they act maliciously (such as a sign or forge fraudulent messages), they risk reputational consequences, external PoS businesses, and ejection from the Wormhole Guardian set. There is little incentive for an individual Guardian to act maliciously. Even if a Guardian were to succeed in forging a fraudulent message, it would not affect the network state because a single signature isn’t enough to establish the super-majority required to gain a quorum. Finally, a fraudulent message would be immediately attributable to the offending Guardian to the rest of the Guardian network.
- Has the bridge code been audited? By a third party? What attack vectors and vulnerabilities were identified, if any? Have the identified vulnerabilities been remedied? The bridge has been audited 25+ times by leading audit firms, including Certik, Trail of Bits, and OtterSec, and the cohort of auditors continues to grow. You can see the complete list of auditors and publicized findings here. Those 25 audits are in addition to Wormhole’s already rigorous internal auditing standards, where a team of 6 experienced security engineers regularly perform reviews of the protocol’s security.
Bridge Infrastructure has a significant part in the multi-chain future of Uniswap v3. We received multiple offers from the biggest bridge providers during the proposal discussion. Uniswap Foundation launched a discussion topic on the forum for technical bridge assessments (The tentative deadline to provide feedback on the process below is Friday, February 17th.), while Celer Team has developed and provided a multi-bridge contract with the support of multiple bridges (Celer, DeBridge, Wormhole). The summary of the current governance proposal progress.
After the current Governance Proposal passes the voting and deployment on BNB Chain, we plan to continue our research and bridge assessment. As we will find out a new solution we will start a new proposal for updating the current bridge infrastructure.
License Exemption
We are requesting an exemption via an Additional Use Grant (license change enacted via the ENS domain uniswap.eth) that would allow the 0xPlasma Labs to use the Licensed Work to deploy it on BNB Chain, a layer 1 EVM compatible blockchain, provided that the deployment is subject to Ethereum layer 1 Uniswap Protocol governance and control. Uniswap V3 will be deployed on BNB Chain by the 0xPlasma Labs through the “Deploy Uniswap V3 Script” 0xPlasma Labs would be permitted to use subcontractors to do this work.
Timeline
Following the Governance Proposal, 0xPlasma Labs will be ready to move forward with the Uniswap V3 deployment on BNB Chain immediately, using Wormhole bridge infrastructure for cross-chain governance messaging.
