Uniswap, the leading decentralized exchange (DEX), has it announce Launch of UniswapX, an open source permissionless protocol for trading via automated market makers (AMMs) and other liquidity sources.
According to the announcement, UniswapX aims to improve self-custodial swaps and grow cross-chain trading by offering better pricing through pooling of liquidity sources, gas-free swaps, maximum extractable value (MEV) protection, and no cost for failed transactions.
Latest release Uniswap protocol
UniswapX addresses the increasing complexity of on-chain routing and liquidity pool fragmentation caused by the growing number of custom pool architectures.
The protocol outsources channel complexity to a network of external fillers who compete to fill swaps using on-chain liquidity such as AMM pools or their own stock. This allows exchanges to use the Uniswap interface without worrying about getting the best price and ensures that transactions are always transparently recorded and settled on-chain.
According to the announcement, Gasless Swap is a core feature of UniswapX. The exchangers sign a unique off-chain command, which is then served up the chain by the fillers who pay the gas on behalf of the exchange.
This eliminates the need for exchanges to pay gas or keep the chain’s native network token for trading. MEV protection is also provided by UniswapX, which returns MEV that would be left on the table to be captured by an arbitrage transaction of swaps through enhanced rates.
UniswapX also has plans to launch a cross-chain version later this year that combines exchange and linking into one seamless procedure.
This will provide users with the ability to exchange between different blockchain networks in a seamless and trustless manner. This is made possible through the use of bridges, which are specialized smart contracts that enable the transfer of assets between different blockchain networks.
Additionally, instead of receiving a bridge-specific token, users can choose which assets to receive on the destination chain.
Strong resistance causes UNI to retreat
Following the announcement of the launch of the UniswapX protocol, the price of Uniswap’s native token, UNI, has seen a rise of nearly 3%. UNI reached a high of $6,152, a level not seen since April 2023. The excitement generated by the launch of this new protocol generated increased demand for UNI, as traders expected an improved user experience and better prices for cross-chain trading.
However, UNI encountered a strong resistance line at this same level, which caused the token to rebound and lose all gains from the announcement. Currently, UNI is trading at $5,738, down 1.4% over the past 24 hours. Despite this recent decline, UNI posted significant gains in the 30-day timeframe, with an impressive 28% gain.
On the other hand, according to Token Terminal dataUniswap’s market capitalization (traded) is currently $4.76 billion, which is an increase of 28.3% over the past 30 days. The market capitalization (fully diluted) was $5.77 billion, up 26.01% over the same period.
Uniswap’s Total Value Locked (TVL) is currently $3.67 billion, a decrease of 0.54% over the past 30 days. The price-fee ratio (P/F) (fully diluted) is 17.50x, which indicates that the market values Uniswap’s potential future earnings at a premium. Uniswap’s trading volume (annual) was $349.19 billion, down by 8.05%.
In terms of user activity, Uniswap has had an average of 69,640 daily active users over the past 30 days, which is an increase of 2.7%.
Featured image from Unsplash, chart from TradingView.com