How To Use Uniswap L2 by DefiDad

How to Trade for Pennies with Uniswap on L2

Before we get started, DeFi Dad wanted to disclose he holds UNI. This is not a recommendation or endorsement to buy UNI, but it is intended to disclose any bias he might have in talking about Uniswap’s latest product release on L2 with Optimism.

Today’s tutorial will be a short one! For years, we’ve been talking about Ethereum and building Layer 2 solutions (L2) to enable users to transact at faster speeds, for pennies in fees, while enjoying the benefits of decentralization and security on Ethereum. 

For background, Optimism has been one of the leading teams developing an L2 solution for Ethereum, describing itself as

“Public Benefit Corporation (PBC), a for-profit corporation intended to produce a public benefit and operate in a responsible and sustainable manner. This means that we are obligated to balance the pecuniary interests of our stockholders with the best interests of those materially affected by our conduct, as well as a specific "public benefit charter" we incorporated with.”

Since July 13th, anybody can deposit, trade and provide liquidity using Uniswap V3 on OΞ (Optimistic Ethereum). There are still safeguards in place to prevent usage from skyrocketing. 

Today, anyone with a MetaMask wallet can easily bridge L1 assets into L2. The bridge currently supports DAI, WBTC, USDT, EURT, ETH, and SNX, with an interface for adding new assets coming soon.

Optimism is enforcing fees on Optimistic Ethereum, with a conservative target of 50,000 transactions per day at launch, “to be targeted with an EIP1559-like congestion pricing mechanism, to be ramped