The Forked Uniswap: A Decentralized Trading Platform in Limbo

04/05/2023 09:09 • Metaverse Matters • 79 views

On April 5th, it was reported that Uniswap, a decentralized trading platform, had been forked by developers after its BSL expired on April 1st. It is reported that starting from April 1st of this year, the open-source code was calculated after upgrading to the V3 version in 2021, as the license is only valid for two years. According to DefiLlama data, the current TVL of PancakeSwap AMM V3 has reached $125 million.

Since Uniswap opened its code on April 1st, its fork protocol TVL has reached $125 million

In the world of cryptocurrency trading, Uniswap has become a household name. This popular decentralized trading platform has introduced a revolutionary way of trading cryptocurrencies. However, a recent development has put Uniswap in limbo. On April 5th, it was reported that this platform had been forked by developers after its BSL expired on April 1st. This article aims to explain the details of the recent Uniswap fork and the implications it might have on the world of cryptocurrency trading.

What Is Uniswap and BSL?

Uniswap is a decentralized trading platform that operates on the Ethereum blockchain. It allows users to trade cryptocurrencies without the need for traditional centralized exchanges. Instead, Uniswap uses automated market makers (AMMs), which enable users to trade cryptocurrencies with liquidity pools. This system allows for a more decentralized trading environment while also allowing users to earn a share of the trading fees earned by the liquidity pool.
BSL refers to the Business Source License, a type of open-source software license that restricts its use and distribution for specific purposes. The license also comes with an expiry date, which means that the code can only be used under the BSL for a certain period. Once the license expires, the code can no longer be used.

Why Was Uniswap Forked?

Uniswap version 2 was released with a BSL attached to it, which meant that the code could only be used under certain conditions. However, the license was set to expire on April 1st, 2021. On March 24th, Uniswap announced that it would be releasing version 3 of the platform, which had been completely re-written from scratch. The new version included a different type of license called the GPL-2.0 license.
However, some developers were not happy with the change in license and decided to fork Uniswap. Forking refers to the process of creating a new blockchain or cryptocurrency by copying an existing one. In this case, the finance community has split into two forks: Uniswap and SushiSwap.

What Is the Future of Uniswap?

The Uniswap fork has created some ambiguity regarding the future of this popular trading platform. However, Uniswap has assured its users that the fork will have no immediate impact on trading. The platform has promised to continue providing liquidity and making the necessary upgrades to ensure the trading environment remains secure.
It is also worth noting that Uniswap has a significant market share in the decentralized exchange space. According to DefiLlama data, the current TVL of PancakeSwap AMM V3 has reached $125 million. Despite the fork, Uniswap’s popularity is expected to continue, and the platform will likely remain a leading player in the decentralized exchange market.

Conclusion

The recent news of Uniswap’s fork has shaken the decentralized exchange market. However, this event is not the first of its kind, and it certainly won’t be the last. Forks are a common occurrence in the cryptocurrency world, and they usually offer a new perspective or innovation to existing platforms. Overall, Uniswap’s future looks bright, and the fork is unlikely to cause significant disruptions in the trading environment.

FAQs

1. What is a decentralized trading platform?
A decentralized trading platform is a platform that allows cryptocurrency trading without needing traditional centralized exchanges. These platforms use automated market makers (AMMs), which enable users to trade cryptocurrencies with liquidity pools.
2. What is a fork in cryptocurrency?
A fork is a process of creating a new blockchain or cryptocurrency by copying an existing one. Forking is usually done to improve the existing platform or offer a new perspective to the original project.
3. How does Uniswap ensure security?
Uniswap uses several measures to ensure security, such as smart contract auditing, timelocks, and code reviews. The platform also offers liquidity provider insurance and has implemented measures to prevent price manipulation.
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