Uniswap will deploy the v3 protocol on the second layer solution Arbitrum through the latest governance proposal.

The Uniswap community has voted to approve the latest governance proposal to deploy Uniswap v3 on the Layer 2 scaling solution Arbitrum. However, they still hold optimism for the solution provided by Optimism.

Latest Governance Proposal from Uniswap

According to a tweet by Uniswap creator Hayden Adams on May 27, the Uniswap community is likely to pass a governance proposal to deploy Uniswap v3 on the second-layer scaling solution Arbitrum, with a vote result of "41.35 million:0" proposed by Compound founder Robert Lesher. Hayden Adams also mentioned that the deployment work for the protocol and interface is currently in progress.

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Assuming the snapshot passes we intend to support the community by deploying the v3 smart contracts to Arbitrum!

We have already begun work on interface support and planning the deployment.

— hayden.eth 🦄 (@haydenzadams) May 26, 2021

However, Hayden Adams stated that the team has not abandoned the original plan to deploy on another second-layer scaling solution, Optimism. Optimism raised $25 million in February this year with A16z as the lead investor but announced a delay in the mainnet launch in March, now expected to go live around July. The delay of Optimism has provided room for other second-layer scaling solutions to develop, such as Polygon, which has recently gained market attention, and Arbitrum that Uniswap is about to deploy.

Optimism's Top Competitor

Arbitrum, developed by Offchain Labs, is an Ethereum-based second-layer scaling solution aimed at exploring smart contract scalability. The project raised $3.7 million in 2019 and introduced the first Rollup system for Ethereum in early 2020.

An article released by Arbitrum in November 2020 highlighted that the Arbitrum Rollup testnet version of Uniswap v2 running on the testnet achieved a 55x reduction in Gas costs compared to Uniswap on the Ethereum mainnet, supporting 390 transactions per second, positioning it as the main competitor to Optimism. Additionally, Ethereum co-founder Vitalik Buterin praised Arbitrum's progress in Ethereum virtual machine compatibility in March this year.

The Arbitrum mainnet was scheduled to launch on May 28 but initially only accessible to developers to allow enough time for building and testing for developers interested in deploying protocols on the Arbitrum network. Reports indicate that OKEx announced in May to be the first centralized exchange to support deposit and withdrawal functions on the network. On the other hand, Arbitrum has established partnerships with protocols like Graph, Bancor, and Biconomy. Upon Uniswap joining the network, more DeFi protocols may follow suit.