Just-In: This Exchange’s Support For Merge Will Be Huge For Ethereum Price
Decentralized crypto exchange Uniswap on Thursday said it will support the Ethereum Merge. Also, the exchange notified users that no Ethereum hard fork or its tokens will be supported in its Web App. As the Ethereum transition from PoW to PoS consensus, Uniswap reminds users about the change in V3 oracles and replayability for Permits.
Uniswap Supports the Merge, Turns Down Ethereum PoW
Uniswap Labs will support the Ethereum Merge and will not support any Ethereum hard fork in its Web App, the company said on September 8. Also, the Uniswap protocol and Web App will continue to run smoothly through the transition. Users don’t have to upgrade anything amid the Merge.
Last week, Uniswap Labs expressed that they are eagerly awaiting the Ethereum Merge. The transition to PoS will ultimately benefit both Uniswap and Ethereum as Uniswap is the largest decentralized exchange on Ethereum. The company believes “it’s an important step in scaling web3 and immediately reduces the environmental impact of Ethereum.”
Uniswap also warned users about possible issues if third-party infrastructure providers such as nodes are down. The downtime may result in brief periods of unavailability.
The decentralized exchange shared recommendations for those building on Ethereum. The recommendations will help keep web3 safe after the Merge when dealing with replayable permits and TWAP oracles.
Uniswap Labs recommends the Median Oracle implementation by the Euler team to maintain Uniswap v3 time-weighted average price (TWAP) oracle security.
Unlike PoW, the cost of manipulating two consecutive oracle values will be significantly lower in PoS. Moreover, the chances of a validator producing two consecutive blocks are higher, despite random selection. As the block producers in PoS are predetermined in every epoch, which is 6 minutes, validators may manipulate oracle prices.
Uniswap suggests users only sign Permits for trusted contracts. Participation in ETHPoW may expose users to face unauthorized fund transfers from their wallets. Permits on Uniswap enable users to save gas fees by approving consent for another contract to spend a token on their behalf. A hard fork will ignore the chain ID system. Thus, a malicious contract deployed on ETHPoW may lead to authorized transactions.
Support for Ethereum PoS Transition Continues to Grow
As per Ethereum co-founder Vitalik Buterin, the Merge will trigger between September 13-15. Moreover, the support for the Merge continues to grow from top exchanges as they turned down any support for Ethereum PoW or ETHW.
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