Uniswap Labs, the team behind the world’s largest DEX Uniswap, has just released some important updates. The batch of advancements has brought in new features, many of which will enhance the user experience of those using the platform.
The new version of Auto Router is arguably the most important update. It will be used to improve trading prices to a greater extent. This is done by routing trades across Uniswap v2 and v3 pools. That way, users can track the actual cost of swaps in real-time and do it directly from the app’s interface.
The new release will optimize the gas costs and find the best price across all Uniswap protocols, which is a major advancement for the project and its users alike. From now on, Auto Router will support both Arbitrum and Optimistic Ethereum.
Not only that, but the Uniswap App will also feature a USD estimate of how big the gas fees that traders must pay will be, even before the swap is submitted. And, by knowing the gas fees upfront, the app will also automatically set slippage based on the trade size and expected gas costs.
Uniswap Revolutionizes DEX Trading
Auto Router’s update will bring a great change to how people approach trading. The Auto Router itself is still fairly new, being introduced only around three months ago. But, since the moment of its introduction, Uniswap managed to enhance pricing at nearly 14% of all trades on the exchange, and nearly at 37% of all trades between the 10 largest tokens according to TVL. As such, it is a major win for all v3 users.
Back then, Uniswap’s goal was to deploy three essential elements, including a more powerful algorithm, split routes, and gas cost awareness.
With split routes, the company enabled users to execute trades across many different pools at the same time, and it did that by splitting them. If this sounds unlike the traditional router, that’s because it is, as a traditional router only uses a single route for trade execution. Auto Router revolutionized this technology by allowing to split trades into seven different paths.
As a result, they were able to benefit from different liquidity depths found in different pools. In addition to that, this approach also explored liquidity at greater depth, which allowed efficient execution. This was particularly important when it comes to larger trades.
Finally, the release is also meant to enable gas costs to optimize users’ effective prices. This led to a reduction in the number of gas-intensive hops when reaching the output token. At the same time, it made the execution of smaller trades a lot more efficient.
These advanced features allow Uniswap to remain the world’s leading decentralized exchange, despite the massive spike in competition within the decentralized economy. Recent data indicates that Uniswap’s market share within the DEX economy stands at 78%, while the second-best is SushiSwap that holds only 8%.