UniswapX Revealed: A Game-Changer for DeFi

**SPEAKER_1** (0:00)
When I think about decentralized finance and what we're trying to achieve, we can't just iterate in our small world. We have to innovate and push beyond it. I'm extremely bullish AMMs as a market structure, but I think that there are also other market structures that could exist in the future, and I think we also want to discover them and have them be part of the Uniswap ecosystem.

**SPEAKER_2** (0:20)
Bienvenue à Bankless. Bankless Nation, it is that time of year again, ETHCC, the Ethereum Community Conference in Paris, France. All the teams, all the projects, all the protocols saved some of their biggest announcements for ETHCC, except for the ones saving it for permissionless, of course.
You might remember last year, ETHCC was marked by the time in which three teams all had the first ZKEVM. Yeah, that was a year ago at ECC. And today, the day I'm recording this, Sunday, the day before ETHCC begins, we already have a massive release out of Uniswap Labs, a brand new protocol called UniswapX, a new half of Uniswap that complements the rest of the Uniswap protocol, the yin to the yang of Uniswap's V1-4, something brand new that fills in the picture of the Uniswap project. Seriously, the best way to describe this is that it's the other half of Uniswap.
It's the half of Uniswap that is meant to make Uniswap the best place for swappers to swap tokens.
Today on the show, we have Hayden Adams. The day before, he gives his ETHCC main stage talk releasing UniswapX into the wild.
What is UniswapX? I'm glad you asked. UniswapX is a protocol for competitive order execution in DeFi. It's a protocol that exists on top of Uniswap's 1 through 4 as well as all the other liquidity sources in DeFi that ensures that the market produces the best possible order execution for anyone looking to swap tokens using UniswapX.
The idea behind UniswapX is that it maximally protects swappers ahead of MEV extractors, ahead of arbitrageurs, ahead of frontrunners to ensure that the average Joe who just wants to swap some tokens gets the best possible deal that the market will allow for. In this episode with Hayden, we go under the hood of UniswapX. What it is, how it works, why it's needed. So you'll learn about UniswapX and how it uses a Dutch auction to maximize swapper returns.
How this Dutch auction mechanism also ensures that MEV is maximally retained by swappers. Also how UniswapX massively reduces bridge risk and almost entirely abstracts away bridging altogether, freeing up capital to not have to be stuck inside of bridges where it's vulnerable. And also how UniswapX formalizes a new kind of player in the game of making trading and DeFi maximally efficient.
As a disclosure, of course, Uniswap is a sponsor of Bankless and Bankless also does hold some uni tokens, which you can see all the details of, as well as all of our other disclosures at bankless.com/disclosures. So let's go and get talking to Hayden Adams all about this new UniswapX protocol. But first, we're going to talk about our preferred centralized exchange for crypto in 2023, Kraken, because you got to get your fiat boomer bucks into the world of crypto somehow. So use Kraken again, our preferred exchange in 2023 If you do not have an account with Kraken, consider clicking the link in the show notes to sign up with one today. Kraken Pro has easily become the best crypto trading platform in the industry, the place I use to check the charts and the crypto prices, even when I'm not looking to place a trade. On Kraken Pro, you'll have access to advanced charting tools, real-time market data and lightning fast trade execution, all inside their spiffy new modular interface. Kraken's new customizable modular layout lets you tailor your trading experience to suit your needs. Pick and choose your favorite modules and place them anywhere you want in your screen. With Kraken Pro, you have that power. Whether you are a seasoned pro or just starting out, join thousands of traders who trust Kraken Pro for their crypto trading needs. Visit pro.kraken.com to get started today. Introducing Polygon 2.0, the value layer for the internet. For too long, the limitations of blockchains have held back app development and stifled user adoption. The internet allows anyone to create and exchange information. What's missing is a value layer that lets anyone exchange, store and program value. That's where Polygon 2 comes in. Polygon Labs has unveiled a series of innovations that will radically alter the Polygon ecosystem and Web3 as a whole. By leveraging groundbreaking ZK innovations such as Polygon ZKEVM, the next iteration of the best-in-class Plonky 2 proving system, and a first-of-its-kind ZK-powered interoperability layer, Polygon 2 will give users and devs unlimited scalability and unified liquidity. Right now, there is a Polygon improvement proposal regarding a potential ZK-powered upgrade of Polygon Proof-of-Stake. If approved, Polygon Proof-of-Stake would become a Layer 2 ZK-EVM validity. So make your voice heard on this proposal by joining the Polygon Discord today. You have a chance to help the Polygon community give the Internet the value layer it deserves. Bonjour, Bankless Nation. It is the Sunday before ETHCC, and I am here with Hayden Adams, who has yet another announcement out of the Uniswap ecosystem. Hayden, what's going on, man? How you doing?