In a groundbreaking announcement, the global powerhouse in the decentralized crypto exchange realm, Uniswap, has publicized the development of a new blockchain infrastructure, christened “UniswapX”. This cutting-edge protocol has been designed to streamline trading functions across automated market makers (AMMs) and other liquidity avenues. Uniswap Labs CEO, Hayden Adams, divulged details of this innovative project at the recent EthCC conference in Paris.
UniswapX emerges as the solution to a spate of teething troubles associated with on-chain trading and self-custody swapping, issues often faced by decentralized exchange markets. One of the noteworthy capabilities of the protocol is the possibility of achieving “better prices” by consolidating various liquidity sources. A couple of other significant features of UniswapX include gas-free swapping and coverage against maximal extractive value (MEV), coupled with no charges for botched transactions.
In the forthcoming months, reports say, UniswapX is set to broaden its horizons to gas-free cross-chain swaps. The debut of UniswapX is through an ‘opt-in beta’ on the main Ethereum network, expanding soon to other chains and the Uniswap wallet. However, the timeline for the final version remains undisclosed.
The feature of liquidity pools plays a vital role in effecting trades on DEXs. However, these are not devoid of shortcomings and can occasionally run dry. UniswapX is configured to overcome this hurdle by cooperating with third-party fillers that facilitate swaps directly or steer users to fitting AMM pools. This move is likely to cause a price slump for traders as third-party fillers would have to vie with Uniswap.
Moreover, these fillers would be responsible for monies associated with gas fees, thus squashing the prerequisite for swappers to possess a blockchain’s native network token, such as ETH or MATIC. The risk of financial accountability for unsuccessful transactions would be eradicated.
Uniswap avows that these fillers would integrate gas fees into the total swap prices, and have the privilege to downscale transaction costs by culminating multiple orders. This strategy could foster an atmosphere of competition for procuring the best possible price.
Last but not least, UniswapX is billed to put an end to MEV – a typically disliked scheme by swappers where network operators cash in on their capability to preview queued transactions. UniswapX intends to solve this by rerouting MEV, thereby safeguarding against arbitrage transactions and sandwich attacks in the process.
Source: Coindesk
