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An in-depth explanation of Uniswap's newly launched cross-AMM protocol, UniswapX.

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What are the highlights of Uniswap's launch of the cross-chain aggregator UniswapX?

Original Title: "How does UniswapX provide a better trading experience?"

Original Author: Hayden Adams, Founder of Uniswap

Translated by: Foresight News

Since the release of the first version of the Uniswap protocol in 2018, on-chain transactions have exploded in growth, with support for millions of users, hundreds of use cases, and $1.5 trillion in transaction volume on Uniswap alone.

In order to develop on-chain transactions and improve self-custody transactions, we are pleased to announce the launch of a new permissionless, open-source (GPL), Dutch auction-based protocol for trading across AMMs and other liquidity sources.

Today, we launched the test version of the protocol on the Uniswap Labs interface, which is applicable to the Ethereum mainnet and will be expanded to other chains and Uniswap Wallet in the future. You can view the code here and read the full whitepaper here.

As time goes on, UniswapX will improve the trading experience in various ways:

Get better prices by aggregating liquidity sources.

No Gas Transactions

Preventing MEV

There is no need to pay any fees for a failed transaction.

In the coming months, UniswapX will expand to support gasless cross-chain transactions.

Further Aggregation

On-chain routing is an increasingly important and complex issue. The innovation of on-chain transactions has led to an explosive growth of liquidity pools. New fee levels, new L2 solutions, and more on-chain protocols will disperse liquidity. We expect to build thousands of custom pool designs on Uniswap v4, which makes routing more challenging. However, as liquidity sources grow, providing competitive prices requires manual integration and a lot of ongoing maintenance and work.

UniswapX aims to solve this problem by outsourcing routing complexity to a third-party open network, and then third-party competition uses on-chain liquidity such as AMM pools or personal assets to fill transactions.

With the help of UniswapX, traders will be able to use the Uniswap interface without worrying about whether they are getting the best price, and trades will always be transparently recorded and settled on-chain. All orders are supported by the Uniswap smart order router, which forces third parties to compete with Uniswap v1, v2, v3, and the upcoming v4.

无 Gas 交易：失败也无需支付费用

No Gas Transactions: No Fees for Failed Transactions

Through UniswapX, traders sign a unique off-chain order, which is then submitted on-chain by a third party who pays the gas on behalf of the trader. Because traders do not need to pay gas, they do not need the native token of the chain (such as ETH or MATIC) to trade or pay any fees for failed transactions. The third party includes the gas fee in the transaction price, but can compete for the best price and reduce transaction costs by executing multiple orders in batches.

In certain situations, users still need to pay Gas fees, such as the initial token authorization for Permit2. In addition, native tokens need to be wrapped when sold, which also incurs Gas fees.

MEV Protection

MEV is one of the biggest problems facing on-chain transactions today, which can lead to even worse execution prices for traders.

With UniswapX, the MEV that was originally obtained through arbitrage trading will be returned to traders at a better price. UniswapX also helps users avoid more explicit forms of MEV extraction: orders executed with third-party private assets cannot be subject to "sandwich attacks", and third parties are incentivized to use private transaction relays when routing orders to on-chain liquidity pools.

Next Step: UniswapX's Cross-Chain Version

Later this year, we will launch the cross-chain version of UniswapX, which combines trading and cross-chain operations into a single action. With cross-chain UniswapX, traders will be able to trade between chains in a matter of seconds. Traders can also choose the assets they want to receive on the target chain. For more detailed information on the design and advantages of cross-chain UniswapX, please refer to the whitepaper.

Launch UniswapX on the Uniswap Labs interface

UniswapX introduces the concepts and patterns of DeFi and digital markets into a new system. Its security, self-regulation, and community principles make Uniswap the most trusted brand in the DeFi field.

UniswapX is an immutable smart contract with no permissions. No one, including Uniswap Labs, can modify or pause the contract. The earliest third-party "filler" is ready to ensure appropriate auction starting prices and fast order execution, and we expect the "filler" network to rapidly expand with user adoption.

According to our commitment to security, ABDK has extensively tested and audited the code and offers bug bounties. Traders always maintain ownership of their funds, and the original assets will only be transferred out of their accounts after the order is executed and the target assets are received.

Just like the Uniswap protocol, UniswapX includes a protocol fee switch that can only be activated by Uniswap governance (Uniswap Labs does not participate in this process).