Following the expiration of the Uniswap v3 code license on April 1, Conflux seeks to deploy the decentralized crypto trading protocol on its network.
Conflux, a regulatory-compliant public blockchain based in China, seeks to deploy Uniswap v3 on its network, according to a proposal on Uniswap’s governance forum on April 7. The move comes days after the Uniswap v3 code license expired, enabling developers to fork the protocol and deploy their own decentralized exchange.
As per the proposal, the deployment would provide “access to millions of potential new users, particularly in the Chinese and Asian markets.” According to Conflux, the blockchain experienced a spike in traffic in the first quarter of 2023. The network has a market capitalization of nearly $1 billion and has $45 million in total value locked on-chain.
“Currently, 84% of worldwide blockchain applications are submitted in China. Compared to the UK and the US, 11% and 14%. […] This shows that China is one of the most mature markets in Web3, and exposure is important for all projects,” said Conflux in the proposal.
Regulatory crackdowns in the United States and Europe would also benefit the crypto industry’s growth in Asian markets, claimed Conflux, noting that over 80 crypto companies are planning to establish an office in Hong Kong, providing a crypto bridge to mainland China.
Ambre Soubiran, CEO of institutional crypto market data provider Kaiko, holds a similar view. “The U.S. being more stringent these days than ever on crypto and Hong Kong regulating in a more favorable way […] is going to clearly shift the center of gravity of crypto assets trading and investments more towards Hong Kong,” he noted in a recent interview.
Aside from potential market reach, incentives offered for projects building on top of Uniswap v3 on the Conflux Network are the creation of liquidity pools for CFX token trading pairs — specifically, CFX-USDT, CFX-BTC, and CFX-ETH. These liquidity pools would be worth $2 million and locked for two years. The Conflux Foundation would also provide $1 million in “liquidity incentives.”
Conflux is a layer-1 blockchain operating using a hybrid proof-of-work and proof-of-stake mechanism. In a recent development, the network announced a partnership with China Telecom to develop a blockchain SIM (BSIM) card. The BSIM will offer a secure place to store digital private keys and will be able to call upon the said signature to transfer money to other users. In addition, a “one-click direct check” functionality will allow users to check for transaction information and status progress in real time.