Uniswap Auto Router Support Is Now Available On Layer 2 Networks

The Uniswap auto router support is now available on the Layer 2 networks as the platform announced just so they bring better pricing and gas estimates for the user so let’s read more in our latest crypto news.

Uniswap Labs is the developer behind Uniswap and the biggest DeFi exchange who released a series of important features to enhance the pricing as well as to optimize the gas cost of the swaps. Uniswap Auto Router has not been released and it enhances trade prices to a greater extent by routing trades across both Uniswap v2 and v3 pools. The users will now be able to track the cost of the swap in real-time right from the app’s interface. In addition to optimizing the gas costs, the new release will find the best price across all of the Uniswap protocols.

Another huge development that accompanied the update was Auto Router supporting both Arbitrum and Optimistic Ethereum which aims to provide an overall cost-effective trading experience with the help of efficient trade pricing coupled with low gas costs. Besides, the Uniswap App will feature a USD estimate of the gas fees before submitting a swap and with the help of these gas estimates, the app will automatically set slippage based on the expected gas costs as well as the trade size. Since the launch of the Auto Router a few months ago, Uniswap Labs revealed that it was a huge win for the v3 users and according to the platform’s analysis, the Auto Router enhances pricing for 13.97% of all of the trades and 36.84% of the trades between the ten biggest tokens in terms of total value locked.

Uniswap Labs deployed three essential elements like cost awareness, split routes, and a powerful algorithm. The split routes enabled users to execute trades across other pools at the same time by splitting them which is unlike the traditional router where a single route is used for trade execution. With the Auto Router, the traders are able to split the trades across seven paths that allow them to benefit from the liquidity depth in the different pools.

It explored liquidity at a greater depth and allows efficient execution on larger trades. Furthermore, the release enabled gas costs to optimize the users’ effective prices that reduced the number of gas-intensive hops that will reach the token and facilitate more efficient execution of smaller trades. Despite the emergence of several platforms, Uniswap continues to enjoy its position as the leader on the market. According to the latest chart compiled by Dune Analytics, Uniswap’s share in the DX market is now set at 78%.