• Uniswap Labs announced Unichain, whose testnet launched on October 10 and mainnet is launching in November, relying on the tech infrastructure from Ethereum layer-2 Optimism’s OP Stack, and block builder Flashbots.
• Unichain is a DeFi-specific scalability solution aiming to offer a universal liquidity hub, with an emphasis on transaction speed and superior security.
• Uniswap’s token UNI will be used, or staked, to validate Unichain transactions and earn part of the network’s sequencer fees – of which the stack will be decentralized using what’s known as the Unichain Validation Network.
• This is a key development, as it will transform UNI from a governance token into a utility token, thereby completely changing its investment case.
Uniswap is the crypto market’s largest decentralized exchange (DEX) and the pioneer of the crypto-native automated market maker (AMM), which later became an industry standard for most DEXs. While Uniswap has maintained over 46% of the market share, its dominance has been eaten away by emerging DEXs, as shown below in Figure 1, that offer revenue sharing with token holders rather than just for liquidity providers.
Figure 1 – Decentralized Exchanges Volume
Source: Dune
Driven by this increasing competition, Uniswap Labs revealed Unichain, a Layer 2 (L2) Superchain, built using OP Stack, which is a modular, open-source software stack developed by Optimism, one of Ethereum’s leading scalability solutions. The primary goal of the OP Stack is to create scalable, secure, and interoperable blockchains, with Unichain being a prime example.
What is Unichain?
In essence, it’s a DeFi-centric Ethereum scaling solution designed to cater to users’ financial activities. By integrating advanced cross-chain functionality through technologies like cross-chain intents (ERC-7683), which we’ll delve into later, and the LayerZero bridge, Unichain addresses key challenges in the DeFi ecosystem:
Transaction Speed: Block times are reduced to one second, with plans for 250ms sub-blocks – faster than many other L2s.
Cost Efficiency: Transaction costs are projected to decrease by approximately 95% compared to Ethereum’s Layer 1, as can be observed below in Figure 2.
Cross-Chain Liquidity: Unichain aims to create a unified ecosystem for seamless multi-chain asset trading, all whilst abstracting the technology’s complexity away from the user. Otherwise, users are required to utilize third-party bridging solutions and asset wrappers, which exposes them to heightened smart-contract risk.
Incentive Structure: A robust reward system that compensates both token holders and liquidity providers for their liquidity and security contributions.
While Unichain aims to tackle liquidity fragmentation across networks, this gradual process will stretch beyond the initial mainnet launch. The protocol will need to incentivize users and liquidity providers to migrate their liquidity to Unichain as the premier network over time. Thus, liquidity fragmentation could worsen in the short term as this reorganization takes place.
Figure 2 – Average transaction speed vs. Fees of Ethereum’s Layer 2s
Source: Dune
What makes Unichain stand out?
Interoperable and a Multi-Chain Cohesive Ecosystem: The quest of lowering transaction costs came at the expense of fragmented liquidity, complicating the user experience. Unichain is designed to simplify swapping across different chains. They worked with OP Labs, the builders behind Optimism (Ethereum’s third largest L2 by TVL of $680M), to make it easy to send messages between L2s in the Optimism Superchain using the network’s stack native interoperability technology. For other chains, Uniswap Labs is improving cross-chain compatibility through initiatives like the Cross-Chain Intents standard, known as ERC-7683.
In this view, Unichain’s Total Addressable Market can have a target of $4.9B, illustrated below in Figure 3.
Figure 3 – UNI’s TVL Across Chains
Source: DeFiLlama
What is ERC-7683, and what is its impact?
Introduced in April 2024, the Cross-Chain Intents standard enhances blockchain interoperability by standardizing off-chain messages and on-chain settlement. This framework simplifies cross-network transactions for users, allowing them to submit a general request—such as swapping Token X on Ethereum for Token Y on Arbitrum—without needing to choose specific bridges, DEXs or solutions. Once a request is made, specialized agents called ”fillers” compete to execute the transaction efficiently. This approach streamlines the process, making it easier for users to trade across several networks like they would in a traditional fintech application that has multiple currency accounts, all whilst fostering competition among service providers across the crypto ecosystem. This will ultimately improve the user experience, which is one of the most important factors in driving mainstream adoption.
Vertical Integration:
Unichain represents a strategic shift in Uniswap’s operational model, enhancing its control over revenue streams and transaction processing. By evolving into an execution network similar to Base and Arbitrum, Unichain now captures additional value through:
o Transaction / Gas Fees – previously allocated to the networks Uniswap lives on. As shown below in Figure 4, Uniswap will be able to preserve about close to $374M in fees, once they’re able to settle these transitions on its own network.
Figure 4 – Uniswap Economics by Blockchain
Source: TheDeFiReport, TokenTerminal
o Swap fees: allocated to liquidity providers (LPs), which had previously been managed and distributed to contributors.
o Front-end fees: the protocol’s only source of revenue that it retains. It has already been in place and managed by the exchange’s front-end interface, as shown below in Figure 5. Uniswap has generated close to $50M in front-end fees since inception.
o Maximal Extractable Value (MEV): previously absorbed by the networks Uniswap was deployed on. Unichain could retain a significant portion of the $83B paid on Ethereum if they had internalized MEV from the offset, as seen below in Figure 5.
Figure 5 – Total Volume of Sandwich attacks on Ethereum, via Uniswap
Source: Dune
This transformation allows Uniswap to optimize its revenue structure and maintain greater oversight of the entire transaction lifecycle, from execution to settlement. The new model not only improves Uniswap’s economic efficiency but also positions it to offer enhanced services and potentially lower costs for users, all while retaining more value within its ecosystem. Uniswap’s substantial DEX volume across multiple networks, as illustrated in Figure 6, positions the new network for significant growth. By consolidating this activity within its ecosystem, Unichain stands to benefit from a powerful network effects.
Figure 6 – Uniswap Volume Across Different Chains
Source: Dune
Unichain’s architecture also enhances the platform’s capabilities with features like fair transaction ordering, which helps prevent market manipulation strategies such as front-running and back-running. Additionally, by utilizing a dedicated validator set on Ethereum, Unichain can effectively mitigate toxic flows, thereby reducing Maximal Extractable Value (MEV) losses, which we talk about next, helping to foster a fairer trading environment.
Lower MEV Loss: Unichain’s collaboration with Flashbots introduces an advanced block production system that enhances market efficiency and mitigates MEV concerns. By utilizing Trusted Execution Environments (TEEs), this system achieves faster block times, improved transaction ordering transparency, and reduced failed transactions. While TEEs do not replace decentralized consensus, they provide enhanced trust and security compared to traditional block builders. This approach effectively limits validators’ ability to manipulate transaction order for profit, creating a more equitable environment.
Unichain Validation Network: UNI stakers will form a decentralized network of full nodes that replace the actions of the centralized sequencer. Overall, they will provide several key benefits, including:
o Enhanced Decentralization: An additional layer of security that allows independent nodes of operators (token stakers) to verify the state of the blockchain – helping to reduce the risks associated with single sequencer architecture commonly found in other L2 solutions.
o Faster Finality: Quicker settlement of cross-chain transactions, driven by the flashblock technology.
o Increased Token Utility: Instead of simply serving as a governance token, UNI will now play a critical part in the ecosystem. Validators will have to stake the token to participate in the network validation – allowing token holders and not just liquidity providers to earn rewards.
So, what does that mean for Uniswap, Ethereum and the other L2s Uniswap was deployed on?
Unichain’s launch will introduce seamless cross-chain swaps directly through the Uniswap Interface and Wallet, significantly enhancing accessibility to cross-chain markets and their liquidity.
The platform will utilize UNI tokens for network security, with staking occurring on the Ethereum mainnet. This integration increases UNI’s utility and potential demand. However, it’s important to note that the staking yield from transaction fees is distinct from the pending fee switch affecting the broader Uniswap community. Both mechanisms serve to incentivize token holders.
Unichain’s introduction may signal a shift towards app-specific chains retaining substantial user activity. This could create a network effect, attracting more users and liquidity and potentially drawing in other DeFi protocols focused on multi-network presence rather than developing proprietary chains. As seen below, Uniswap has about 14M cumulative users spread across the multiple networks it is deployed on, depicted below in Figure 7. Thus, consolidating this user base could create an unmatched DeFi hub.
Figure 7 – Uniswap Users and New Users
Source: Dune
For Ethereum, Unichain’s launch may lead to a reduction in revenue, as Uniswap has been a significant contributor to transaction fees on the mainnet. Consequently, this could further decrease Ethereum’s deflationary activity. However, if an explosion of activity occurs, we can expect a surge in the amount of ETH used by L2s to settle their activity on the mainnet.
To recap, Uniswap’s evolution into Unichain represents a pivotal shift for the UNI token, transforming it from a governance-focused asset into a multifaceted, value-generating instrument. This transition elevates UNI’s status in the crypto ecosystem, positioning it competitively alongside established proof-of-stake tokens like ETH.
Each week the 21Shares Research team will publish our data-driven insights into the crypto asset world through this newsletter. Please direct any comments, questions, and words of feedback to research@21shares.com
Disclaimer
The information provided does not constitute a prospectus or other offering material and does not contain or constitute an offer to sell or a solicitation of any offer to buy securities in any jurisdiction. Some of the information published herein may contain forward-looking statements. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties and that actual results may differ materially from those in the forward-looking statements as a result of various factors. The information contained herein may not be considered as economic, legal, tax or other advice and users are cautioned to base investment decisions or other decisions solely on the content hereof.
Michael Saylor’s bold Bitcoin bet and Strategy’s risk analysis
Bitcoin price technical analysis: Where are the liquidation levels?
What are real-world assets and why do we need tokenization?
Michael Saylor’s bold Bitcoin bet and Strategy’s risk analysis
Strategy (formerly MicroStrategy) has amassed a staggering $43 billion in Bitcoin, positioning itself at the forefront of the corporate “reserve race.” Under the leadership of Bitcoin maximalist Michael Saylor, the company now boasts an $84 billion market cap. But with such an aggressive strategy, how sustainable is its approach—and what risks lie ahead? We break it down in today’s analysis.
Bitcoin price technical analysis: Where are the liquidation levels?
A drop below $72,000 could flush longs, while a breakout above $90,000 may squeeze shorts. One key positive indicator is that Bitcoin continues to print higher lows since March 10, which preserves a bullish market structure in our view. Dive into our technical analysis.
What are real-world assets and why do we need tokenization?
Imagine owning a slice of a skyscraper or a piece of fine art with just a few clicks. Tokenization, the act of converting ownership rights to real-world assets (RWAs) into tradable tokens, has surpassed $10 billion in on-chain value, unlocking global 24/7 access to once-exclusive markets with liquidity, efficiency, and yield. Find out how it works.
Research Newsletter
Each week the 21Shares Research team will publish our data-driven insights into the crypto asset world through this newsletter. Please direct any comments, questions, and words of feedback to research@21shares.com
Disclaimer
The information provided does not constitute a prospectus or other offering material and does not contain or constitute an offer to sell or a solicitation of any offer to buy securities in any jurisdiction. Some of the information published herein may contain forward-looking statements. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties and that actual results may differ materially from those in the forward-looking statements as a result of various factors. The information contained herein may not be considered as economic, legal, tax or other advice and users are cautioned to base investment decisions or other decisions solely on the content hereof.
Invesco BulletShares 2030 EUR Corporate Bond UCITSETF EUR Acc (BSE0 ETF) med ISIN IE000I25S1V5, försöker följa Bloomberg 2030 Maturity EUR Corporate Bond Screened-index. Bloomberg 2030 Maturity EUR Corporate Bond Screened Index följer företagsobligationer denominerade i EUR. Indexet speglar inte ett konstant löptidsintervall (som är fallet med de flesta andra obligationsindex). Istället ingår endast obligationer som förfaller under det angivna året (här: 2030) i indexet. Indexet består av ESG (environmental, social and governance) screenade företagsobligationer. Betyg: Investment Grade. Löptid: december 2030 (Denna ETF kommer att stängas efteråt).
Den börshandlade fondens TER (total cost ratio) uppgår till 0,10 % p.a. Invesco BulletShares 2030 EUR Corporate Bond UCITSETF EUR Accär den billigaste och största ETF som följer Bloomberg 2030 Maturity EUR Corporate Bond Screened index. ETFen replikerar det underliggande indexets prestanda genom samplingsteknik (köper ett urval av de mest relevanta indexbeståndsdelarna). Ränteintäkterna (kupongerna) ackumuleras och återinvesteras.
Invesco BulletShares 2030 EUR Corporate Bond UCITSETF EUR Acc är en mycket liten ETF med tillgångar på 6 miljoner euro under förvaltning. Denna ETF lanserades den 18 juni 2024 och har sin hemvist i Irland.
Produktbeskrivning
Invesco BulletShares 2030 EUR Corporate Bond UCITSETFAccsyftar till att ge den totala avkastningen för Bloomberg 2030 Maturity EUR Corporate Bond Screened Index (”Referensindexet”), minus avgifternas inverkan. Fonden har en fast löptid och kommer att upphöra på Förfallodagen.
Referensindexet är utformat för att återspegla resultatet för EUR-denominerade, investeringsklassade, fast ränta, skattepliktiga skuldebrev emitterade av företagsemittenter. För att vara berättigade till inkludering måste företagsvärdepapper ha minst 300 miljoner euro i nominellt utestående belopp och en effektiv löptid på eller mellan 1 januari 2030 och 31 december 2030.
Värdepapper är uteslutna om emittenter: 1) är inblandade i kontroversiella vapen, handeldvapen, militära kontrakt, oljesand, termiskt kol eller tobak; 2) inte har en kontroversnivå enligt definitionen av Sustainalytics eller har en Sustainalytics-kontroversnivå högre än 4; 3) anses inte följa principerna i FN:s Global Compact; eller 4) kommer från tillväxtmarknader.
Portföljförvaltarna strävar efter att uppnå fondens mål genom att tillämpa en urvalsstrategi, som inkluderar användning av kvantitativ analys, för att välja en andel av värdepapperen från referensindexet som representerar hela indexets egenskaper, med hjälp av faktorer som index- vägd genomsnittlig varaktighet, industrisektorer, landvikter och kreditkvalitet. När en företagsobligation som innehas av fonden når förfallodag kommer kontanterna som fonden tar emot att användas för att investera i kortfristiga EUR-denominerade skulder.
ETFen förvaltas passivt.
En investering i denna fond är ett förvärv av andelar i en passivt förvaltad indexföljande fond snarare än i de underliggande tillgångarna som ägs av fonden.
”Förfallodag”: andra onsdagen i december 2026 eller sådant annat datum som bestäms av styrelseledamöterna och meddelas aktieägaren
Det betyder att det går att handla andelar i denna ETF genom de flesta svenska banker och Internetmäklare, till exempel DEGIRO, Nordnet, Aktieinvest och Avanza.
Since President Trump appointed Mark Uyeda as acting SEC chair two months ago, many investigations into crypto businesses have been dropped, as the SEC moves away from regulation by enforcement and works to create a framework for digital assets. As regulations become clearer and news flow turns more positive, crypto prices—which dropped sharply this week—should begin to better reflect the new regulatory landscape in the US.
We believe this regulatory shift could ultimately help trigger the next leg of the current bull run, as investors better understand the significance of regulatory clarity and seek to acquire bitcoin and altcoins at what we believe are currently very favorable levels.
Market Highlights
SEC Dismisses Crypto Enforcement Actions
The SEC dropped its enforcement actions against crypto-related companies Kraken, Consensys, and Cumberland DRW.
This indicates a shift in SEC’s regulatory approach, favoring clearer guidelines over enforcement actions. Such a pivot could foster a more predictable environment, encouraging innovation within the sector.
Banks to Engage in Crypto Activities
The FDIC has rescinded previous guidelines which prevented financial institutions from engaging with crypto activities without prior sign-off.
By removing bureaucratic hurdles, banks may more readily offer crypto-related services, potentially leading to broader adoption and integration of digital assets.
Bitcoin ETFs Inflow Streak Surpassed $1 Billion
US spot Bitcoin ETFs have recorded a 10-day inflow streak exceeding $1 billion marking the longest such streak in 2025.
This underscores growing institutional and retail investor confidence in Bitcoin as an asset class that helps increase market stability and possibly paving the way for the approval of other crypto-based financial products.
Market Metrics
All NCITM constituents had negative performance last week, with XRP (-10.8%) and UNI (-10.7%) seeing the steepest declines. ETH also experienced a sharp drop (-9.1%), contributing to NCITM’s underperformance relative to BTC (-2.9%). The NCITM -4.2% decline reflects a broader risk-off sentiment in the crypto market, as investors reassess their positions amid ongoing macroeconomic uncertainties.
NCITM (-4.2%) extended its underperformance last week, deepening year-to-date losses. Traditional indices like the S&P 500 (-1.5%) and Nasdaq 100 (-2.4%) saw smaller declines. The gap between crypto and other risk assets continues to widen, while gold has emerged as the top performer in 2025, gaining nearly 20% amid ongoing macroeconomic uncertainties. This trend highlights a growing risk-off sentiment, with investors shifting toward defensive assets and away from high-volatility investments.