UniswapX Upgrade: Gas-free Swapping and MEV Resistance

    The UniswapX upgrade is a new protocol that offers pooled liquidity and free swaps. It's in beta and introduced by the Uniswap team.

    Uniswap has added the UniswapX update, an open-source protocol for permissionless Dutch auction-based trading. This enhances online trading and facilitates self-monitoring swaps on Automated Market Makers (AMMs) and other liquidity sources.

    Benefits of UniswapX

    UniswapX is a significant development for the largest decentralized exchange (DEX) in the crypto market. The team claims it will provide several benefits, including:

    • Improved rates by pooling liquidity sources
    • Gas-free swaps
    • Protection against Maximal Extractable Value (MEV)
    • No charges for failed transactions and free cross-chain swaps
    How UniswapX Works (Source: Uniswap Blog)

    The primary mechanism of UniswapX is to transfer the complexity of routing to an open network of third-party fillers. These fillers compete to fill swaps using on-chain liquidity from the AMM pool or their own inventory.

    UniswapX is now accessible on the Uniswap Labs interface. The team emphasizes that the contract cannot be modified or suspended. The code has undergone testing, checking, and evaluation with the launch of a bug bounty program.

    UNI Gets Price Bump

    The news had a predictable impact on the price of the Uniswap (UNI) token, resulting in a 3% decrease initially. In the last 24 hours, the UNI price experienced an additional 1% decline.

    UNI Price Chart

    UNI, along with other cryptocurrencies, saw a significant surge during the week, with gains of approximately 15% in the past 7 days. Other recent developments have also played a crucial role in boosting UNI’s price and increasing its market dominance.

    One noteworthy development is the launch of Uniswap v3 on the Avalanche network. Furthermore, Uniswap is preparing to introduce Uniswap v4, which will bring user-generated features, including a new type of smart contract called a “hook” that enables developers to build on liquidity pools.

    The rally following this news has somewhat eased investor sentiment after a previous rally showed signs of selling pressure. However, trading volume remains disappointing, and the release of new features by UniswapX is expected to alleviate this.

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