Uniswap’s route optimization plan, a quick overview of its new features and working principles

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The new routing solution changes the previous single routing transaction method, and will automatically find a better transaction solution among all Uniswap liquidity pools to minimize slippage and minimize gas fees.

Original Title: “The Way of DeFi丨Uniswap Releases Auto-Routing Function, Traders’ Benefits Come”
Written by: Uniswap
Compilation: Porridge Overnight

On September 17 news, Uniswap Labs today released a new Auto Router function, which uses advanced intelligent order routing algorithms to match Uniswap traders with better trading prices.

It is reported that this new function has the following four characteristics:

  • Perform split route transactions across multiple asset pools at once;
  • More powerful algorithms, suitable for large transactions and provide better transaction prices;
  • Consider the cost of gas to ensure the rationality of the transaction;
  • Finally, if better transactions are available on Uniswap V2 after considering the gas cost, this Auto Router will automatically switch to V2.

Split routing

One way for this Auto Router to get a better price is to split transactions among multiple asset pools. In traditional routers, transactions are always executed through a single route. Now, your transaction can be split into up to seven routes to take advantage of the depth of liquidity in different pools. In the example below, the trader saves $134,689 by splitting the route of the COMP:USDC transaction, which is enough to cover the additional gas cost of the second route.

The multiple fee levels added in Uniswap v3 make this feature more important than ever.

Auto Router optimizes your price by splitting routes among multiple asset pools

More powerful algorithm

This Auto Router can achieve efficient execution, especially in large transactions. At the time of writing, without Auto Router, USDT:USDC transactions worth 80 million USD would have a -62.9% price slippage impact. With Auto Router, the impact of price slippage caused by the same transaction execution will be as low as -0.749%.

Uniswap's route optimization plan, a quick overview of its new features and working principles Auto Router explores liquidity more deeply than the previous standard Router

Control Gas Cost

Auto Router will consider the cost of gas to optimize the effective price for users. For example, Auto Router saves $8 in gas fees for the following ETH:LINK transaction, and provides a better net price by removing a hop from the route .

Uniswap's route optimization plan, a quick overview of its new features and working principles Auto Router will recognize the cost of gas, and will only make one more hop transaction when it produces a better effective price

Auto Router interface

By default, all users in the Uniswap application can use Auto Router. You can hover your mouse over the Auto Router icon to enter your trading route.

Uniswap's route optimization plan, a quick overview of its new features and working principles

If you don’t want to use Auto Router for any reason, you can disable it in the settings

open source code

We are firmly committed to a decentralized and open source financial infrastructure. In this spirit, we released the complete Auto Router source code under the GPL license.

@ uniswap/routing-api : package and deploy smart-order-router as a managed service.

@ uniswap/smart-order-router : Contains the logic to find the most efficient way to exchange token A for token B, considering split transactions and gas costs across multiple routes.

Developer

The Uniswap application gets quotes from Auto Router instances hosted by Uniswap Labs. Developers and IPFS builders will be able to call the Auto Router API within moderate request limits. When the request limit is exceeded, and in any case where Auto Router cannot return a quote, the application will fall back to the old route. If your application needs to handle higher loads, welcome to fork the open source code to deploy your own Auto Router instance.

In the next few weeks, we will host a Twitch live broadcast. This event will introduce the Auto Router code base and teach developers how to use it.

Measure improvement

In our analysis of 4,429 on-chain swap transactions since June 1st, Auto Router increased the pricing of 13.97% of all transactions and 36.84% of transactions between the top 10 tokens in TVL.

Auto Router is beneficial for transactions of all sizes. Many low-value transactions benefit from Auto Router’s awareness of gas costs, allowing it to recommend fewer hops for better overall execution. For larger transactions, the price increase is mainly driven by Auto Router’s new route splitting function and the ability to explore more liquidity.

Uniswap's route optimization plan, a quick overview of its new features and working principles

future career

Our journey has just begun! We will continue to improve the automatic routing function to provide Uniswap application users with better transaction prices. The next version will support routing split across Uniswap v2 and v3 at the same time, and we also plan to support routing on Optimistic Ethereum and Arbitrium.

In addition, we intend to further decentralize the automatic router of the Uniswap community by releasing the client version of the automatic router.

Source link: www.8btc.com

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