In this article, I will cover the Can Layer One Coin be Listed on Uniswap and Pancakeswap.
These core coins of a blockchain, for example, Bitcoin and Ethereum, mostly do not trade on other networks.
However, thanks to innovations such as wrapped tokens and interoperability solutions, these coins can now be traded on decentralized exchanges. Let’s analyze how this is performed further and what it brings to the market.
Understanding Layer One Coin
Layer One coins refer to the currencies used in Layer 1 blockchains which serve as the fundamental building block of the entire blockchain ecosystem.
These blockchains provide the minimal infrastructure required for validating a transaction, ensuring security and achieving a consensus across the network. Some of the most popular Layer One coins include:
Bitcoin (BTC): Bitcoin is the first and the most popular cryptocurrency, which functions on top of its own blockchain and employs a Proof of Work (PoW) consensus mechanism.
Ethereum (ETH): It is the native currency for the Ethereum blockchain, allowing for the creation of smart contracts and dApps. Bitcoin operates under a Proof of Stake (PoS) mechanism but is moving to PoW, where staking will also become an option.
Cardano (ADA): Ada is the native currency of the Cardano, a blockchain that adopts a proof of stake consensus mechanism for increased security and sustainability.
Solana (SOL): It is one of the fastest blockchains with the lowest fees, and it operates through a combination of Proof of History (PoH) and PoS.
Polkadot (DOT): It utilizes a PoS protocol that allows different chains to send messages and assets back and forth without trust.
Can Layer One Coins be Listed on Uniswap and Pancakeswap
Uniswap and PancakeSwap cannot definitely enable the coins for Layer 1 as these are DEcentralized EXchanges DEXs and can transact only on a specific Layer 1 blockchain.
Let me point out the important points
- Uniswap
- PancakeSwap
Uniswap
This platform remains exclusively focused on the Ethereum blockchain, utilizing its Layer 2 solutions. It facilitates trading ERC-20 tokens only, not native Layer 1 coins like Bitcoin (BTC) or Solana (SOL).
PancakeSwap
This has been specifically integrated with the BNB Smart Chain (BSC) and supports BEP-20 tokens. Direct trading of native Layer 1 coins, such as ETH or AVAX, isn’t possible here as well unless they are wrapped
The Way in Which Layer 1 Coins Can Actually Lend And Lease A Hand:
Wrapped Versions: These layer 1 coins, hence, will now be able to convert their existing versions into ERC-20 (wBTC) or BEP-20 tokens, which can then be used for trading wrapping layer 1 assets. AVAX or BTC will never have this chance of denial
Bridges: With these cross-chain solutions, the layer one asset will now not only be able to stay on one network but, as a wrapped version, move across networks as the asset on the ETH or BNB chain.
Which Wraps One Layer One Coin Into Another:
Decentralizing Wraps: This platform will make almost free rotating even easier Create bets on An AI Version Which will become Easy To Integrate: WBTC – Wrapped The Bitcoin Being represented on Uniswap
Decentralizing Anti-Native Wraps: Aaps Assume the bridges
If you wish to have a native coin listed, one would hope to look for an account on that layer 1 blockchain.
Challenges of Listing Layer One Coins
One significant cryptocurrency listing on decentralized exchanges like PancakeSwap, Sushiswap, and Uniswap is the Layer One challenge. These are as follows:
Technical Challenge
For Layer One coins to be compatible with DEX’s smart contract standard requirements, they are most often wrapped (as WBTC is for Bitcoin).
One of the changes that can be somewhat challenging is ensuring that the wrapping and unwrapping processes of a coin are smooth transitions.
Trade volume and market wastage
For coins that are unfavourable for cross-listing, most of the time, there is no need to wick or toggle any switches.
Especially for the later regarded Layer One coins, it is difficult to attract enough liquidity funding to get the providers that are required.
Security risks
The processes for executing a listing on DEX are done using smart contracts, thus there is a high chance the systems will not be breached.
If structural weaknesses are identified, it will result in a loss of finances and tarnished reputation.
Lawful deployment
This is one area worth noticing because unlawful moving into or off the market can put you into serious problems.
Be careful, as implementing appropriate measures in cryptocurrency trading and listing areas differs in all countries.
Developer and community support
For the coin to be sustained and marketed well, there will be a need for a decent community and developer support.
A lack of presence on DEX will make it very difficult for the coin to be engaged using it.
Issues of Interoperability
It is difficult to ensure that layer one coins can smoothly connect to the underlying DEX blockchain (Uniswap and Ethereum, PancakeSwap and BSC). Bridging technologies must be stable and dependable.
Potential for future listings of Layer One coins
The likelihood that Layer One coins may list in the future on Decentralized protocols such as Uniswap and PancakeSwap is promising.
These popular platforms, which continue to grow and develop their functionality, are likely to add support for more Layer One coins in case they have such a need or through wrapped versions (for example, WBTC for Bitcoin).
This expansion will enhance users’ capabilities and options to exchange and stake more crypto assets.
At the same time, improvements in cross-chain and bridging solutions will further enhance the usability of Layer One coins, improving the ecosystem and user experience as a whole.
Conclusion
To summarize, Layer One coins, such as Bitcoin and Ethereum, can be traded on decentralized exchanges with repackaged tokens; WBTC and WETH are examples of these repackaged tokens, allowing for the trade of the mentioned coins on pg.
Including these wrapped currencies allows for using these DEXs without moving from Layer One coins.
As unwinding L1 coins are still facing technical and regulatory issues, factors like the market’s demand and evolution in cross-chain technology provide an avenue for more L1 coins to be traded on these platforms, which would, in return, increase the overall liquidity and flexibility of the cryptocurrency market.
