China-based regulatory-compliant public blockchain Conflux seeks to deploy Uniswap v3 on its network, according to a proposal at the Uniswap 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 exchanges.
According to the proposal, the deployment would provide access to “millions of potential new users, especially in China and Asian markets.” According to Conflux, the blockchain experienced a surge in traffic in the first quarter of 2023. The market cap of the network is close to $1 billion, with a total value locked on-chain of $45 million. “Currently, 84% of global blockchain applications are filed in China. This compares to 11% in the UK and 14% in the US. This shows that China is one of the most mature markets for Web3, Visibility is important to all projects," Conflux said in the proposal.
Regulatory crackdowns in the U.S. and Europe will also benefit the crypto industry’s growth in Asian markets, Conflux said, noting that more than 80 crypto firms plan to set up offices in Hong Kong as a crypto bridge to mainland China.
Ambre Soubiran, CEO of institutional cryptocurrency market data provider Kaiko, takes a similar view. “Cryptocurrency is regulated more strictly than ever in the U.S. today, while Hong Kong regulates it in a more favorable way a recent interview.
In addition to the potential market scope, an incentive offered to projects building on top of Uniswap v3 on the Conflux network is the creation of liquidity pools for CFX token trading pairs specifically, CFX-USDT, CFX-BTC and CFX-ETH. These liquidity pools are worth $2 million and locked for two years. The Conflux Foundation will also provide a "liquidity incentive" of $1 million. Conflux is a layer 1 blockchain that operates 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. BSIM will provide a safe place to store digital private keys and be able to invoke the above signature to transfer funds to other users. In addition, the "one-click direct query" function will allow users to query transaction information and status progress in real time.
