Conflux, a regulatory-compliant public blockchain based in China, is seeking to expand its reach and attract new users by deploying Uniswap v3 on its network. Uniswap v3 is a decentralized exchange protocol that allows users to trade digital assets without the need for intermediaries.
The move comes just 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 of Uniswap v3 on the Conflux network would provide “access to millions of potential new users, particularly in the Chinese and Asian markets.”
Conflux has experienced a spike in traffic in the first quarter of 2023, and the network has a market capitalization of nearly $1 billion, with $45 million in total value locked on-chain. The blockchain has been gaining popularity in the region due to its regulatory-compliant nature, making it an attractive option for projects looking to expand into the Chinese market.
“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.
Conflux also notes that regulatory crackdowns in the United States and Europe would benefit the growth of the crypto industry in Asian markets. 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, agrees that Hong Kong could become a hub for crypto trading and investments. “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.
In summary, Conflux’s decision to deploy Uniswap v3 on its network could provide significant benefits to the blockchain and the wider crypto industry. The move will allow the network to access new markets, particularly in China and Asia, where blockchain applications are increasingly popular. Additionally, the creation of liquidity pools for CFX token trading pairs and the provision of liquidity incentives could attract more projects to build on top of the Conflux Network, increasing its overall value and adoption.
Furthermore, the timing of the deployment is interesting, as it comes just after the expiration of the Uniswap v3 code license, which has allowed developers to fork the protocol and deploy their own decentralized exchanges. By deploying Uniswap v3 on the Conflux Network, the blockchain is positioning itself as a strong contender in the rapidly evolving decentralized exchange space.
Conflux’s decision to partner with China Telecom to develop a blockchain SIM card is also noteworthy. The BSIM card will offer a secure place to store digital private keys, providing users with greater security and peace of mind when transferring funds. Additionally, the “one-click direct check” functionality will allow users to check for transaction information and status progress in real-time, improving the user experience.
The move towards greater regulatory compliance in the crypto industry is also a significant factor in Conflux’s decision to deploy Uniswap v3 on its network. The blockchain’s compliance with regulations in China and its partnership with China Telecom position it as a safe and secure option for users looking to invest in the crypto space. As regulatory crackdowns continue in the United States and Europe, Asian markets could see increased growth in the crypto industry, with Hong Kong emerging as a hub for trading and investments.
In conclusion, Conflux’s decision to deploy Uniswap v3 on its network could have significant implications for the blockchain and the wider crypto industry. By providing access to new markets, creating liquidity pools and offering liquidity incentives, the network is positioning itself as a strong contender in the decentralized exchange space. Additionally, the blockchain’s partnership with China Telecom and its compliance with regulations in China could attract more users looking for secure and compliant options in the crypto space. As the industry continues to evolve, it will be interesting to see how Conflux adapts and grows to meet the changing needs of users and developers.
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