(Repeated) Ethereum Team Nethermind Warps Uniswap Onto Layer 2 Network StarkNet

Ethereum development company Nethermind announced that it has warped the decentralized exchange Uniswap onto the Ethereum Layer 2 network StarkNet.

According to Nethermind, the move will make a version of Uniswap available, albeit unconnected to the exchange, for those using StarkNet. This is also aimed to make the exchange cheaper for Ethereum users to swap tokens, as StarkNet network offers lower fees than making transactions and swaps on the main Ethereum blockchain.

Nethermind team lead Jorik Schellekens acknowledged that it is challenging to take projects on Ethereum to StarkNet because the two networks use different coding languages. While the former uses the Solidity coding language, the latter uses Cairo. As a result, the code has to be translated so that it works in the different language, Schellekens explained.

Schellekens, however, said “StarkNet's recent improvements enabled the Warp project to take on more advanced applications, beginning with Uniswap.” He further added “by warping a project like Uniswap, warp itself is becoming more mature and this is lowering the barrier to entry for other projects to test out StarkNet.”

Several decentralized apps (dapps) are beginning to adopt StarkWare's layer 2 product for the Ethereum blockchain – StarkNet – to enhance transaction efficiency.

StarkNet uses zero knowledge (ZK) rollup technology to solve Ethereum’s scaling problem. Ethereum’s high gas fees and transaction costs have triggered an emergence of alternatives. Some are new blockchains like Solana while others are seeking to offer efficiencies in the Ethereum blockchain to make it more competitive.

StarkNet’s use of ZK rollups marry the security of Ethereum with the need for lower transaction fees. ZK rollups combine together hundreds of transactions into one, which is then written to the Ethereum blockchain. Since this technology involves writing one, not hundreds, of transactions to the blockchain it reduces gas fees significantly.

The StarkNet’s underlying technology was recently deployed on dYdX, a market for cryptocurrency derivatives that runs on Ethereum network without the usual fees associated with it.

Nethermind’s announcement follows a similar expansion by Lido into Ethereum layer 2 networks Arbitrum and Optimism. A few days ago, Ethereum liquid staking protocol Lido expanded its staking token stETH to Ethereum layer 2 networks Arbitrum Bridge and Optimism. The expansion is set to allow traders to stake tokens directly on the layer 2 networks. Lido’s expansion means users will be able to stake and interact with their tokens with significantly lower transaction fees, Lido stated.