  This paper studies the market structure impact of cheaper and faster chains
on the Uniswap v3 Protocol. The Uniswap Protocol is the largest decentralized
application on Ethereum by both gas and blockspace used, and user behaviors of
the protocol are very sensitive to fluctuations in gas prices and market
structure due to the economic factors of the Protocol. We focus on the chains
where Uniswap v3 has the most activity, giving us the best comparison to
Ethereum mainnet. Because of cheaper gas and lower block times, we find
evidence that the majority of swaps get better gas-adjusted execution on these
chains, liquidity providers are more capital efficient, and liquidity providers
have increased fee returns from more arbitrage. We also present evidence that
two second block times may be too long for optimal liquidity provider returns,
compared to first come, first served. We argue that many of the current
drawbacks with AMMs may be due to chain dynamics and are vastly improved with
cheaper and faster transactions
