What is UniswapX

Uniswap Founder Hayden Adams launched UniswapX on EthCC on July 17, 2023. UniswapX aggregates liquidity from various decentralized exchanges to provide the best quotes for on-chain trades.

According to its white paper, UniswapX has five main features:

UniswapX outsources trade execution to third-party fillers. These fillers can simultaneously utilize on-chain and off-chain liquidity to execute trades, ensuring users always get the best price on their orders.

UniswapX trades use Permit2 for off-chain signatures, allowing users to indirectly pay gas fees as part of their transaction, so users do not need to hold the native token of the chain to pay for gas.

Users do not need to pay gas for failed transactions; batch settlement and orders executed directly from the filler’s liquidity pools are also cheaper than trading directly on the Uniswap protocol.

Unlike AMMs, UniswapX can effectively avoid MEV. It returns any MEV profits generated by orders to users in the form of better prices. Additionally, UniswapX orders are relatively less susceptible to front-running.

UniswapX can be extended in the future to support cross-chain trading, allowing users to seamlessly trade assets on the original chain for the desired assets on the target chain.

Essentially, UniswapX allows users to place off-chain limit orders, which selected fillers fulfill and record on-chain, while paying gas fees on behalf of the users.

The concept of UniswapX is not new. 1inch has a similar aggregator mechanism, and the Solver model of Cowswap functions similarly to UniswapX’s fillers. In simple terms, UniswapX combines innovations from 1inch and Cowswap, with some small improvements such as gasless trading and MEV protection. However, given Uniswap’s position as the leading decentralized exchange, UniswapX may be much more popular than 1inch and Cowswap. **$UNI **$1INCH **$COW **