Uniswap, a decentralized cryptocurrency exchange, said on Thursday that it will support the Ethereum Merge. In addition, the exchange informed customers that the Ethereum hard fork and related tokens will not be supported in its Web App. Uniswap reminds users about the change in V3 oracles and replayability for Permits as Ethereum transitions from PoW to PoS consensus.
Uniswap Backs the Merge but Opposes Ethereum PoW
Uniswap Labs announced on September 8 that it will support the Ethereum Merge and will not support any Ethereum hard forks in its Web App. The Uniswap protocol and Web App will also continue to function normally during the transition. Users are not required to upgrade anything during the Merge.
Uniswap Labs stated last week that they are looking forward to the Ethereum Merge. Because Uniswap is the largest decentralized exchange on Ethereum, the switch to PoS will ultimately benefit both Uniswap and Ethereum. According to the business, “it’s a key step in scaling web3 and immediately minimizes Ethereum’s environmental effect.”
Uniswap also alerted customers about potential problems if third-party infrastructure providers, such as nodes, were unavailable. There may be temporary moments of unavailability as a result of the downtime.
The decentralized exchange provided recommendations for Ethereum developers. When dealing with replayable permits and TWAP oracles after the Merge, the guidelines will assist maintain web3 safe.
To ensure Uniswap v3 time-weighted average price (TWAP) oracle security, Uniswap Labs recommends the Euler team’s Median Oracle implementation.
In PoS, the cost of manipulating two successive oracle values is much smaller than in PoW. Moreover, the chances of a validator producing two consecutive blocks are higher, despite random selection. Validators may manipulate oracle prices because the block producers in PoS are predetermined in every epoch, which is 6 minutes.
Uniswap advises users to sign Permits only for trusted contracts. Users who participate in ETHPoW may experience unlawful fund transfers from their wallets. Permits on Uniswap allow users to save gas prices by giving another contract permission to spend a token on their behalf. The chain ID system will be ignored by a hard fork. As a result, a malicious contract launched on ETHPoW could result in permitted transactions.
Support for the Ethereum PoS Transition is Growing
The Merge will take place between September 13-15, according to Ethereum co-founder Vitalik Buterin. Furthermore, big exchanges are increasingly supporting the Merge, despite their refusal to embrace Ethereum PoW or ETHW.
The price of Ethereum is also rising as a result of the community’s enthusiasm for the Merge. The support of Uniswap for the Merge will be a big boost for Ethereum and DeFi.