What is UniswapX

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Uniswap founder Hayden Adams unveiled UniswapX at EthCC on July 17, 2023. UniswapX aggregates liquidity from various decentralized exchanges to provide the best quotes for on-chain swaps.

According to its whitepaper, UniswapX offers five major benefits:

Source: Uniswap Blog
  • UniswapX outsources routing and batching to a permissionless set of fillers. These fillers can route orders to a combination of on-chain and off-chain liquidity, ensuring that users always receive the best possible execution on their orders.
  • UniswapX trades use Permit2 executable off-chain signatures, allowing users to pay transaction fees implicitly as part of their swap and avoid maintaining a balance of the chain’s native token.
  • Swappers never pay gas costs for failed swaps, and orders that are batch settled and/or filled directly from fillers’ inventory are more gas efficient than swaps on the core Uniswap Protocol.
  • Unlike AMMs, UniswapX internalizes MEV, reducing value lost by returning any surplus generated by an order back to the swappers in the form of price improvement. Additionally, UniswapX orders are far less vulnerable to front-running.
  • UniswapX can be extended to support cross-chain trading, allowing swappers to seamlessly trade assets on an origin chain for desired assets on a destination chain.

Essentially, UniswapX allows users to place off-chain limit orders, and selected fillers fulfill these orders and record them on-chain, paying for gas fees on behalf of users in the meantime.

The concept of UniswapX has been introduced previously. 1inch has a similar aggregator mechanism, and Cowswap's solver model functions the same as UniswapX's fillers. UniswapX combines the innovation of 1inch and Cowswap and makes minor improvements, such as gas-free transactions and MEV protection. However, UniswapX may see much more adoption, given Uniswap's status as the go-to decentralized exchange.

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