The integration of ERC-7683 into Uniswap has been announced, in an effort to tackle chain fragmentation as a leading decentralized exchange. A really big deal in the process towards become more versatile across chains.
What is Uniswap and the ERC-7683 Proposal
- A key point from Uniswap Labs about the prospects of cross-chain transactions was the role of ERC-7683 as a unification agent.
- Jointly launched with Across Protocol, ERC-7683 attempts to create a concise way for goals-oriented systems to express activities that are to be done across multiple chains.
- To enable developers to define unvarying trading rules and interfaces across all kinds of blockchains including those in different networks, there is a standard created to implement an API for the performance of cross-chain trades.
- Its objective is to make it easier to trade virtual assets between those blockchains thereby enhancing convenience, compatibility as well as interoperability.
Must Read: What is Uniswap | Guide to the Decentralized Exchange
UNI Token Reaction
This announcement was well received by the market and it led to a 2.78% increase in the price of Uniswap’s token, UNI, which now trades at $8.43. With an increase of 14.18% in trading volume, its market capitalization ascended to $5.05 billion meaning that it is now positioned as the 22nd biggest cryptocurrency.
The assumed investor’s trust that is expected to continue is the price trajectory as the whales from Uniswap increase their acquisitions of the tokens due to the benefits they anticipate from the new standard that has been set forth under the ERC-7683 proposal and the smart contract named ISettlementContract, which is defined by a generic structure CrossChainOrder.
How to Solve Chain Fragmentation Issue?
To solve the problem of fragmentation with a universal liquidity network, Uniswap plans to use the ERC-7683 standard through UniswapX with its goal of working towards a cross-chain future. By integrating this standard into its system, the company will both consolidate its standing among existing competitors in the markets and create an example for others in terms of doing cross-chain Cryptography.
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