Unichain ¹

Uniswap exchange built their own blockchain where MEV goes to liquidity providers instead of bots. The DEX that became an L2 to protect its users from sandwich attacks.

Unique Position Unichain redistributes MEV value back to liquidity providers rather than letting bots extract it. TEE-based block building creates an encrypted mempool preventing sandwich attacks. The only L2 built specifically to optimize DEX trading with sub-second blocks and fair ordering. Direct integration with Uniswap's liquidity ensures deep markets from day one.

Primary Use Cases

• Providing liquidity to earn from MEV redistribution
• Trading with protection from sandwich attacks
• DeFi protocols seeking fast, fair transaction ordering
• Applications requiring sub-second block confirmations
• Uniswap ecosystem participants maximizing returns

Ecosystem Character DeFi-native ecosystem centered around Uniswap with major protocols like Euler and Morpho joining early. Community values fairness and user protection over pure decentralization. Strong liquidity depth inherited from Uniswap creates immediate utility. More focused on solving real trading problems than technical purity.

Trade-offs

• Primarily benefits Uniswap ecosystem over broader DeFi
• TEE hardware security adds trust assumptions beyond cryptography
• Another OP Stack chain contributing to fragmentation
• Centralized sequencer with gradual decentralization planned
• MEV redistribution model may not work for all applications

Technical Details

Architecture OP Stack rollup with Flashbots TEE integration for transparent block building. Encrypted mempool prevents front-running while maintaining priority fee ordering. Stage 1 rollup with permissionless fault proofs already active. Working toward 250ms Flashblocks for near-instant trading.

Performance One-second block times faster than most L2s with 250ms target upcoming. Gas costs comparable to other OP Stack chains. Significant protocol adoption driving consistent transaction volume. Liquidity depth from Uniswap ensures efficient price discovery.

Security & Trust Model Standard optimistic rollup with 7-day withdrawal period for fraud proof challenges. TEE-based block building requires trust in hardware security modules. Permissionless fault proofs allow anyone to challenge invalid states. Centralized sequencer but decentralized validation network planned.

Control & Governance Uniswap Labs operates centralized sequencer with decentralization roadmap. Protocol upgrades follow Uniswap governance model with UNI token holders voting. MEV redistribution parameters controlled by protocol rather than market. Development priorities align with Uniswap ecosystem needs.