BTC

$94654.867

-2.09%

ETH

$3350.993

-1.73%

XRP

$2.169

-1.61%

BNB

$703.417

-0.14%

News

UniswapX Launches: Empowering Traders with Next-Level Cross-AMM Capabilities

July 17, 2023 - Around 3 mins mins to read

Key Points:

  • Uniswap launches “UniswapX” – a new blockchain protocol for trading across automated market makers and liquidity sources.
  • ????Features include “better prices” by aggregating liquidity sources, gas-free swapping, protection against MEV, and no cost for failed transactions.
  • UniswapX will expand to gas-free cross-chain swaps in the coming months. Fillers cover gas fees, fostering a competitive environment for achieving the most favorable price.
Uniswap recently announced the launch of a new blockchain protocol called “UniswapX”.
UniswapX

This new protocol has been designed to allow trading across automated market makers (AMMs) and other liquidity sources. The details of this project were released through a press release, while Uniswap Labs CEO, Hayden Adams, was scheduled to make an announcement about it on Monday at the EthCC conference in Paris.

According to DefiLlama, Uniswap currently has around $3.8 billion of collateral or “total value locked”. Uniswap has stated that UniswapX addresses many of the problems that are faced by on-chain trading and self-custody swapping. The features of UniswapX include “better prices” through the aggregation of liquidity sources. The press release also claims that UniswapX offers gas-free swapping, protection against maximal extractive value (MEV), and no cost for failed transactions.

UniswapX 1

Uniswap has announced that in the coming months, UniswapX will expand to gas-free cross-chain swaps. UniswapX will initially be launched in “opt-in beta” on the Uniswap Labs interface for the main Ethereum network, with plans to expand to other chains and the Uniswap wallet “in the near future”. However, the company has not yet announced when a final version of UniswapX will be available.

Liquidity pools are a lifeline for swappers looking to execute trades on DEXs, but these pools can sometimes dry up. UniswapX aims to solve this problem by engaging with third-party fillers that can fill swaps directly or route users to appropriate AMM pools. These third-party fillers will have to compete with Uniswap itself, which will help to drive down prices for traders.

UniswapX 2

Fillers will cover the gas fees on behalf of swappers, which removes the need for swappers to own a blockchain’s native network token, such as ETH or MATIC, to participate in trading. This also removes any financial responsibility for unsuccessful transactions. According to Uniswap, fillers incorporate gas fees into overall swap prices. They also have the option to reduce transaction costs by aggregating multiple orders, thereby fostering a competitive environment for achieving the most favorable price.

Uniswap has promised that UniswapX will help to thwart MEV – a scheme that is usually loathed by swappers. This is done by allowing network operators to capitalize on their ability to preview queued transactions.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

AMM Capabilities

Uniswap

UniswapX

Author

Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.