Opinion: Uniswap to implement user verification

Adam Cochran, partner at venture firm Cinneamhain Ventures, suggested that the decentralized exchange Uniswap allows for the introduction of a KYC system in the next version of the protocol. KYC

20/24

So I have to imagine that Uniswap V4 allows for some KYC system, and they are getting ready to launch it, and be months ahead of everyone else in gas efficiency by having pushed for their own complex OPCODES that they’ve been building on for a while.

— Adam Cochran (adamscochran.eth) (@adamscochran) December 11, 2022

The expert justified his conclusions by the platform’s development team’s active push for the Ethereum Improvement Proposal—EIP-1153 for Ethereum. The proposal was published in June 2018 and aims to optimise gas usage by introducing new temporary storage functions for transaction data. Its co-author was Uniswap programmer Moody Salem.

In Cochran’s view, the proposed update opens a “cheap vector” for DoS attacks and gives Uniswap an edge, which uses its own opcodes for gas efficiency. He called the solution under-tested and “unfair” to all Ethereum users.

Salem rebutted his assertion regarding the attack vector. He noted that, contrary to Cochran’s portrayal, the proposal does not involve gas refunds, and its implementation has been thoroughly tested.

This is false. Transient storage does not have any refunds. It’s not a DOS vector, and the implementations are explicitly DOS tested. To quote @mhswende, «It’s a nice feature, of course we’d want it.»https://t.co/cxIUxy557U
Consider unfollowing or muting this guy. https://t.co/8OsfDuEdKC

— Moody 🦄 (@sendmoodz) December 12, 2022

Ethereum developers, in comments, also reminded that EIP-1153 is already implemented in some clients.

1153 is also —
— already hammered out spec-wise
— implemented in several clients
— easy for compilers to implement support for+has an existing implementation
— obvious gas + performance savings right off the bat
— opens a path to simplifying I/O (read: gas metering) in the future

— sudo init vyper (@big_tech_sux) December 8, 2022

Cochran drew attention to Salem’s comments about the upgrade’s advantages for NFT usage and KYC features. Uniswap launched its own aggregator for the NFT market after the acquisition of the Genie marketplace, the expert noted.

He also noted that the license for the third version of the exchange’s protocol will expire in a few months: BSL.

«Thus, I am compelled to conclude that Uniswap v4 allows for some KYC system, and they are preparing to launch it and be months ahead of everyone in gas efficiency by pushing their own bespoke opcodes that they’ve been building on for a while», — Cochran.

20/24

So I have to imagine that Uniswap V4 allows for some KYC system, and they are getting ready to launch it, and be months ahead of everyone else in gas efficiency by having pushed for their own complex OPCODES that they’ve been building on for a while.

— Adam Cochran (adamscochran.eth) (@adamscochran) December 11, 2022

He stressed that he is not opposed to proposals to improve Ethereum from companies. However Cochran believes they should be viewed critically:

«Even unintentionally, they will always view things through the lens of their own interests».

21/24

I’m all for companies contributing to the development of Ethereum and proposing new EIPs.

But I do think that we have to be far more critical of corporate generated EIPs.

Even when unintentional, they’ll always view development through a bias lens.

— Adam Cochran (adamscochran.eth) (@adamscochran) December 11, 2022

Earlier, DeFi analyst Chris Blec said that in four years of Uniswap’s existence it has moved from an icon of decentralisation to a corporation akin to TradFi institutions. He noted that the platform’s current team comprises politicians, bankers, compliance experts and others exerting clear influence over decision-making.

«Uniswap v1-3 are among the most decentralized & trustless protocols in all of DeFi, while the Uniswap corporation is becoming one of the most anti-crypto and regulation-friendly organizations in all of DeFi.»https://t.co/1YLxPt2utl

— Chris Blec (@ChrisBlec) December 8, 2022

As an example of steps that run counter to DeFi ideals, Blec cited the August blocking of users of the US-sanctioned mixer Tornado Cash.

In November, Uniswap updated its privacy policy and spoke about rules for protecting user data.

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