The interplay between gas fees and application performance continues to be a critical area of focus in decentralised ecosystems. Gas fees, which represent the cost of transacting on-chain, often create friction between the needs of applications and the activity of automated market makers (AMMs). Unichain’s approach offers a new perspective on balancing these demands, with a focus on Layer 2 (L2) solutions and fast cross-chain interoperability.
Applications generally require low, predictable gas fees to ensure smooth user experiences. In contrast, AMMs, essential for on-chain liquidity, tend to drive fees higher. This is due to the reliance on arbitrageurs who stabilise markets, with their profitability depending on a fee floor. Furthermore, AMM activity introduces volatility, making gas fees unpredictable and creating an environment that app developers often find less than ideal.
This has led to growing sentiment that applications might prefer to avoid sharing block space with AMMs in the future. AMMs consume significant resources, raising costs and reducing available space for other applications. Yet, the liquidity they generate is indispensable for many apps. This creates a tension: how to access AMM liquidity without being directly impacted by their resource-intensive nature.
Unichain’s proposal addresses this by emphasising fast cross-chain interoperability. This would allow applications to operate on chains optimised for low fees and predictable performance, while still interacting seamlessly with AMMs operating on separate chains. By decoupling these activities, Unichain aims to provide the best of both worlds: liquidity without compromise.
A common misconception is that chains must be general-purpose, with the assumption that chains offering the most liquidity are inherently the most useful. While some applications benefit from proximity to trading activity, others prioritise stability and cost-effectiveness over direct access to liquidity. Unichain’s vision acknowledges this diversity, advocating for chains tailored to specific use cases.
By enabling specialised environments for applications and liquidity providers, Unichain seeks to optimise performance for all participants. Cross-chain interoperability ensures that apps can tap into liquidity pools as needed without sharing the same block space with AMMs. This separation not only improves predictability for applications but also reduces the cost pressures created by resource competition.
One challenge lies in the economic incentives of chain developers. Many prioritise the immediate revenue generated by higher fees driven by AMM activity. However, this approach can alienate app developers and users who value cost efficiency and performance. Unichain’s model shifts the focus towards long-term sustainability, aligning the priorities of all stakeholders in the ecosystem.