The largest decentralized cryptocurrency exchange in the world, Uniswap, recently released the “UniswapX” blockchain technology for trading across automated market makers (AMMs) and other liquidity sources.Uniswap Labs CEO Hayden Adams was scheduled to make the announcement on stage Monday at the EthCC conference in Paris. Information about the project was released in a press release.
According to the website DefiLlama, Uniswap, the largest decentralized exchange (DEX) in the world with over $3.8 billion in collateral or “total value locked,” claims that UniswapX solves many of the problems associated with on-chain trade and self-custody switching.According to the press release, features include “better prices” by combining liquidity sources, gas-free exchanging, security against maximal extractable value, or MEV, and no fees for unsuccessful transactions.
According to the business, UniswapX will eventually support gas-free cross-chain swaps.Uniswap is introducing UniswapX in “opt-in beta” on the Uniswap Labs interface for the primary Ethereum network, with plans to expand to other chains and the Uniswap wallet “in the near future.”When a final version would be made accessible was not specified by the company.
The liquidity pools provide a lifeline for swappers when conducting trades on DEXs, yet these pools can occasionally run empty. By working with third-party fillers that immediately fill swaps or send users to the proper AMM pools, UniswapX aims to alleviate this issue.Price reductions for traders would result from these third-party fillers having to compete with Uniswap.Along with removing the necessity for swappers to possess a blockchain’s native network currency, such as ETH or MATIC, to engage in trade, fillers will also pay the gas fees on their behalf, shielding swappers from any financial liability for failing transactions.
Fillers, according to Uniswap, factor gas fees into swap rates as a whole, but they also have the ability to save transaction costs by combining several orders, encouraging bidding wars for the best possible price.Last but not least, Uniswap asserts that UniswapX will assist in preventing MEV, a practice that is typically despised by swappers and in which network operators profit from their capacity to preview queued transactions.
In order to prevent sandwich attacks and arbitrage transactions from seizing MEV, UniswapX encourages fillers to use private transaction relays, which keeps things hidden from MEV bots.