Unichain, the Layer 2 network that operates as an EVM rollup, is poised to gain a major liquidity boost following the creation of a one-click migration tool. Enso, which specializes in middleware for onchain protocols, has launched a solution that simplifies moving liquidity to Unichain with a little help from LayerZero and Stargate.
As it stands, liquidity providers (LPs) on EVM chains wanting to migrate to Unichain have to endure a multi-step process, including manual bridging, that makes the task a chore. Enso’s solution cuts those nine steps down to just one. This breakthrough looks poised to turn on the tap for Unichain, with the prospect of up to $3.5B in liquidity being moved there.
Why Unichain?
Unichain is where the best iteration of Uniswap’s exchange can be found. V4 takes advantage of Unichain’s architecture, which boasts one-second block times and ultra-low fees.
Developed by Uniswap Labs, Unichain is intent on becoming the home of DeFi, through scaling where Ethereum can’t. While the tech to realize this vision is in place, the liquidity has yet to seriously arrive. Enso’s migration tool looks poised to fix that.
The tool is targeted at LPs currently running V2 or V3 of Uniswap on Ethereum or its Layer 2 chains. By moving to V4 in one click they’ll be able to enjoy a low-fee environment together with all the other tech improvements that come bundled with V4.
Uniswap Labs elected for a soft launch of Unichain in February, and as a result adoption has been slow and steady. With tooling now in place to streamline liquidity deployment, that pace is poised to pick up.
Enso Co-Founder Connor Howe appears confident that everything is aligning for Unichain, venturing that “Through engineering a unified solution with the help of Stargate and LayerZero, Enso has added the missing piece to the puzzle.
With the ability to transfer their positions in one click, Uniswap LPs are about to trigger one of the largest liquidity migration events in Ethereum history.”
Three Partners Work as One
Creating a solution that automates the process of unstaking, removing liquidity, bridging it, and then re-adding it on a new chain and DEX is no mean feat. So it’s no surprise that when it came to handling the bridging component, Enso turned to the veterans of interoperability, LayerZero and Stargate.
Between them, the three partners have come up with the goods, with Uniswap LPs the prime beneficiaries of this. But the solution will also benefit traders on Unichain, who will be able to enjoy tighter spreads and better pricing.
While Uniswap Labs isn’t technically in competition with Ethereum, it’s naturally eager to lure traders to its own take on EVM infra. As if the prospect of block times that are 12x faster than Ethereum aren’t enough, these will be pushed to as low as 200 milliseconds in a future update.
But in the here and now, it’s still got plenty to entice traders and LPs alike. Particularly now that Enso, Stargate, and LayerZero have risen to the challenge and made liquidity migration a cinch.
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