Author: Dan Robinson, LianGuai Researcher; Translator: LianGuai0xxz
UniswapX will change the game rules for DEX, MEV, and interoperability, and I believe there are five reasons for this.
1. This architecture opens up a broad design space for DEX.
- Former SEC Official’s Interpretation Is the Ripple Judgment Worth Celebrating in the Crypto World?
- Understand DePIN Distributed Physical Infrastructure Network
- A Comprehensive Analysis of Arkham Valuation and Alpha Mining Practical Tutorial
Signed orders (or “intents,” to use the terminology of our time) can be more efficient, flexible, and ultimately more powerful than transactions.
2. It lays a better foundation for the auction of orders that returns MEV to users.
Current order flows are typically built on top of transaction-based exchanges, which is an awkward choice (often requiring multiple transactions and additional fees paid on-chain). I believe future order flows will be built on UniswapX.
3. It is still in the early stages. There is still much work to be done in improving off-chain order matching (including making it as decentralized, competitive, and privacy-preserving as possible).
Today’s UniswapX is a necessary step towards this goal, but I have many ideas on how to go further.
Off-chain orders are “less opaque” than on-chain transactions and are mathematically easier to handle. They can be aggregated, batched, meshed, added, subtracted, compressed, encrypted, proven, challenged, and baked. This opens the door to a lot of innovation in order matching.
In the long run, I believe the order matching component of UniswapX may even become an ideal application for decentralized block builders like SUAVE by Flashbots. Once SUAVE is launched, I think UniswapX may be one of the first applications to showcase and leverage its powerful capabilities.
4. Seamless cross-chain and (especially) cross-rollup swaps will be revolutionary.
In order for Ethereum’s Rollup-centric roadmap to work, users need to be able to move between aggregations cheaply, quickly, and easily. I believe UniswapX has the right design for cross-chain exchanges.
5. UniswapX is a complement to Uniswap v4, which aims to support the sustainable improvement of passive liquidity provision through new technologies. This reflects a very basic belief of mine: improvements to the Uniswap ecosystem will not come from zero-sum redistribution.
If a Swapper’s trade does not receive optimal execution, they will eventually go elsewhere. If LPs suffer losses, they will eventually leave. We need to improve the prices for Swappers, and these Swappers are not funded by LPs. UniswapX is one way to achieve this improvement.
In conclusion, I believe Uniswap v4 and UniswapX point the way to the future of DEX. Not because they are the final conclusion of protocol design, but because they open up design space.