Uniswap Is it really the Tencent of the cryptocurrency world with both praise and criticism?
Is Uniswap the Tencent of the crypto world, receiving both praise and criticism?
Just one month after the release of V4, Uniswap announced another new product. Founder Hayden Adams announced at ETHCC that they will soon launch UniswapX, a cross-AMM aggregation protocol based on Dutch auctions.
UniswapX aims to create a new trading experience in the coming months. It aggregates liquidity sources to enhance trading value, effectively prevents MEV, provides gas-free transactions, eliminates costs for failed transactions, and further expands to support cross-chain gas-free transactions, providing users with a better and more efficient trading experience.
What makes UniswapX special?
The innovation of UniswapX lies in its open network where it outsources the complexity of routing to third-party fillers to aggregate liquidity and provide more favorable prices. Traders using UniswapX don’t need to worry about price issues as the trading process is transparent, and the results are public and settled on-chain. All orders are supported by the Uniswap smart order router, forcing fillers to compete with Uniswap v1, v2, v3, and future v4.
Regarding gas-free transactions, UniswapX also presents different strategies. The unique off-chain orders signed by traders will be submitted to the chain by fillers who pay the gas on behalf of the traders. Since traders don’t need to pay gas, they won’t incur any fees when trading or when dealing with failed transactions.
- Living Environment and Hope From ‘Lying Flat’ and Doing...
- In-depth analysis of Pendle The Yield Flywheel in the LSDFi Track
- Gnosis LianGuaiy Product Details Revealed How to Connect Crypto and...
As for preventing MEV, UniswapX demonstrates a strong determination. Any MEV captured by arbitrage transactions will be returned to the traders by increasing the price. Furthermore, UniswapX helps users avoid more intuitive forms of MEV extraction, where orders executed by the filler’s inventory cannot be inserted, and fillers are incentivized to use private transaction relays to route orders to on-chain liquidity venues.
When it comes to gas-free cross-chain transactions, the canvas that UniswapX is about to realize is already unfolding before us. It combines swapping and bridging into a seamless operation, allowing traders to achieve exchanges between chains in just a few seconds. They can even independently choose the assets they receive on the target chain, without being limited to specific bridge tokens.
However, the community is not satisfied with Uniswap’s new product.
Mixed opinions: UniswapX = CoWSwap + 1inch?
In the eyes of many community members and KOLs, UniswapX is praised as an innovator and has high expectations. KOL LianGuaitrimonio.Defi (@I_am_LianGuaitrimonio) praised the launch of UniswapX, the cross-AMM aggregation protocol, saying, “Uniswap is like Apple… releasing a new version every five business days.”
LianGuairadigm researcher Dan Robinson (@danrobinson) highly praised the changes brought by UniswapX on social media, saying, “I think UniswapX changes the game rules for decentralized exchanges, MEV, and interoperability,” and listed five reasons in detail.
However, under Dan Robinson’s tweet, the official account of Curve Finance had a different opinion, with a hint of a different flavor: “Dan, forgive me for being blunt. The rules of the game changed a long time ago: when 1inch first conducted high-quality aggregation, when CoWSwap launched the Solvers model. UniswapX is good, but it is not the creator, not even the second player.”
Undoubtedly, Curve Finance believes that Uniswap is copying.
Some community members also questioned: “What is the difference between UniswapX and CoWSwap?”, “Isn’t this basically CoWSwap?”, “UniswapX should thank the open-source spirit of the cryptocurrency industry”, “Uniswap v4 is Crocswap; UniswapX is Cowswap”.
CoWSwap’s official account also posted several tweets, accompanied by sarcastic meme images, welcoming Uniswap to further validate their trading design, seemingly mocking Uniswap’s imitation of them.
Is Uniswap really the “Tencent of the cryptocurrency industry”?
In the sea of cryptocurrency, Uniswap is like a massive wheel, leading the way for decentralized trading platforms with its immense influence. The launch of UniswapX by Uniswap has sparked a heated discussion and also sparked our thinking: will the sailing of the giant wheel create waves that make it difficult for small boats to move forward?
When it comes to Uniswap’s positioning, people can’t help but compare it to the concept of “Tencent of the cryptocurrency industry”.
Many people believe that the launch of UniswapX undoubtedly dealt a heavy blow to many decentralized trading platforms. As a new product of Uniswap, UniswapX combines aggregation, non-custodial, and Dutch auction-based models to prevent MEV, provide transaction without gas fees, and even expand to support cross-chain transactions without gas fees.
This is a natural extension of Uniswap’s product line. However, it may also cause other decentralized trading platforms like CoWSwap and 1inch to lose part of their future market share.
Furthermore, many projects on the path of innovation also find that instead of competing with Uniswap, it is better to become part of the Uni ecosystem. In the field of decentralized trading platforms, Uniswap’s position is almost unshakable. Like a leading wheel, Uniswap’s influence sweeps the field. Combined with its unique legitimacy in the cryptocurrency industry, Uniswap’s position is crucial throughout the industry.
In other words, only when innovative features are launched on Uniswap, can these features be considered truly mainstream. On the contrary, projects that focus on a particular innovative feature will lose their unique selling points and positioning, just like CoWSwap and 1inch now.
KOL DeFi Cheetah (@DeFi_Cheetah), who has worked in VC and hedge funds, hopes to clear up the confusion surrounding CoWSwap and 1inch: For those who are excited about the UniswapX update, have you heard of CoWSwap and 1inch? I really think these teams are also working hard to innovate, just like Uni v4.
Of course, UniswapX has similarities in functionality with other products, but we cannot deny that Uniswap may also be the most forked DeFi protocol. As one of the pioneers of decentralized trading platforms, Uniswap has come this far mainly thanks to its own innovation.
Returning to the mid-June upgrade of Uniswap V4, compared to the V3 version, V4 has more freedom and flexibility in asset composability, and it also significantly reduces gas fees.
The core feature of Uniswap V4, Hooks, allows every developer to create a customized DEX that meets their specific needs and assemble their own “Lego blocks.” Hooks are plugins used for interacting with customized liquidity pools, swaps, fees, and liquidity providers (LPs). Through Hooks, developers can perform specific operations at key moments in the lifecycle of a liquidity pool, such as before/after a swap or before/after a change in LP position.
Therefore, with the support of the new Hooks feature, developers no longer need to develop other DEXs. They only need to customize liquidity and add frontend pages and elements that meet their own needs to create their “designated place.” At the same time, they don’t need to worry about insufficient liquidity in this “designated place.”
If Uniswap is called the “Tencent of the cryptocurrency industry,” it may be an exaggeration, and it seems more like an emotional release from not seeing the expected innovative products. Uniswap emerged as a purely innovative project that carried hundreds of billions of dollars in liquidity with only 500 lines of code, so of course, everyone hopes that every product release will be a stunning surprise. However, no one can achieve that consistently. Apple also releases features that have been implemented on Android earlier, but does that make it wrong?
The relationship between new technology and new products is not a simple equation. Even with old technology taken to the extreme, new products can still stand out.