Uniswap Introduces New DEX Aggregator Solution: UniswapX

Hayden Adams, the founder of Uniswap, has unveiled a new open-source protocol named UniswapX. This solution aims to aggregate liquidity from various decentralized trading pools.

Uniswap Launches UniswapX

UniswapX is designed to provide users with optimal exchange rates by integrating liquidity from multiple sources. According to Uniswap Labs, this Aggregator protocol is currently in beta testing on Ethereum.

Source: Uniswap Twitter

Key Features of UniswapX

UniswapX introduces a third-party entity called "Filler," responsible for utilizing on-chain liquidity to execute swap transactions. Users on the Uniswap interface will not need to worry about whether they are getting the best rate, as all pricing and transactions will be transparently recorded and fixed on-chain. This will be supported by Uniswap's smart router, requiring Fillers to compete with liquidity from Uni V1, V2, V3, and eventually V4 pools.

Gas-Free Transactions and MEV Protection

One of the standout features of UniswapX is its gas-free transactions, allowing users to place off-chain orders without incurring gas fees. Fillers will cover the gas costs to fulfill these orders.

“With UniswapX, users can sign off-chain orders, which are then brought on-chain. If a Filler decides to execute the trade, they cover the gas fees. This eliminates the need for users to hold native coins (ETH, MATIC, etc.) in their wallets for each transaction,” explains Uniswap Labs.

UniswapX also aims to protect users from Maximal Extractable Value (MEV) activities, improving trade prices by avoiding sandwich attacks. Adams mentioned that Fillers will need to use a transaction relay layer to facilitate smooth on-chain routing.

Future Features and Governance

UniswapX will feature a transaction fee-sharing mechanism, contingent on approval through Uniswap governance voting. Adams emphasized that UniswapX is "immutable" – the code cannot be altered, and Uniswap Labs cannot pause or change the smart contract. Users will retain full control over their funds during swaps.

UniswapX represents a significant advancement in the DEX landscape, promising to enhance user experience with better rates, gas-free transactions, and increased security.