In July 2023, UniswapX released a new whitepaper, detailing ambitious visions for the development of DEX (decentralized exchanges). As next-generation decentralized trading platforms, UXUY and UniswapX differ significantly in their developmental approaches, but they share a high level of alignment in multiple objectives. Both UniswapX and UXUY are striving to expand the trading market share of DEX and drive the growth of the DeFi ecosystem.
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We believe that the introduction of third-party “Fillers” is UniswapX’s most significant innovation, as it embeds a new trading model into the AMM (Automated Market Maker) mechanism.
Fillers provide a competitive mechanism for UniswapX, allowing external AMM pools or private repositories of on-chain liquidity to compete with Uniswap v1, v2, v3, and v4. The Dutch auction mechanism ensures that traders get the best market price. Fillers break the traditional boundaries between order books and AMMs, driving industry transformation, strengthening DEX competitiveness, and greatly enriching UXUY’s underlying liquidity.
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Shared Objectives
UXUY is delighted to find that UniswapX’s typical features align perfectly with UXUY’s vision. Both products and protocols share a common mission of continuous pursuit of decentralization, as expressed by Uniswap’s founder Hayden Adams in his interview with Coindesk:
“Decentralization has been part of our philosophy since the very, very beginning and still is today.” (June 12, 2023) — Hayden Adams
Gas-free Transactions Similar to UXUY, UniswapX introduces the concept of Gas-free transactions to provide traders with the most seamless trading experience. The essence of this approach lies in processing transaction requests off-chain while executing Fillers on-chain, eliminating the need for traders to interact directly with on-chain operations or pay Gas fees. This user-friendly feature is particularly appealing to newcomers in the cryptocurrency ecosystem.
Self-custody Both UniswapX and UXUY adhere to the principle of Self-custody, empowering users to have full control over their private keys without relying on custodial services. Private keys are a critical component of the cryptocurrency ecosystem, enabling users to sign and verify transactions on the blockchain, emphasizing the mantra, “Your keys, your crypto.” Both UniswapX and UXUY make the same choice in this regard.
Aggregating Liquidity The innovative nature of on-chain trading has led to an explosion of liquidity growth, prompting major trading platforms to expand their liquidity pools due to the certain user growth they bring. UniswapX and UXUY’s focus is not on building new AMM pools but rather on smart order routers combined with aggregated AMMs. By introducing Fillers to compete with major mainstream trading protocols, traders will benefit from more competitive prices.
Different Paths
The most significant difference between UXUY and UniswapX lies in their chosen paths. UniswapX supports an ecosystem based on Ethereum and the EVM (Ethereum Virtual Machine), while UXUY places greater emphasis on the introduction and trading of non-EVM ecosystem assets. Currently, the fragmentation of various ecosystem platforms hinders liquidity aggregation, and the era of cross-chain interoperability is yet to come. This poses a considerable disadvantage for value discovery.
UXUY’s co-founder, Jordan, presented a set of data showing that in the past decade, the best-performing crypto assets each year were not on Ethereum and the EVM. Even after Ethereum’s launch in 2015, this situation has not changed.”
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Currently, the largest stablecoin, USDT, operates on the Tron network, while the growing asset of 2023, ORDI, runs on the Bitcoin network. In the foreseeable future, more ecosystems will lead to the next wave of innovation.
Based on this ideology, UXUY has officially released the ‘The UXUY Crypto Equity Manifesto’ calling for the advancement of cross-chain trading for emerging assets. In the declaration, it proposes that trading is the only weapon that can break down barriers. Only by setting aside prejudice and using decentralized means can we jointly promote crypto equity.
https://void.cat/d/WxdS1pTFAHDLiaGvHeQjbd.webpBeyond the Ethereum and EVM (Ethereum Virtual Machine) ecosystems, UXUY is also committed to driving the development of the Bitcoin Layer 2 network. Whether it is supporting the Lightning Network or .sats domain names, UXUY continues to enrich blockchain diversification and, in doing so, constructs its most unique path of development.