Cover image
MAR 2, 2024

OKX adds Uniswap in bid to eliminate gas fees

by CoinNess Global

Leading crypto exchange OKX has announced the seamless integration of Uniswap Labs' application programming interface (API) into its decentralized exchange (DEX). The objective of the Uniswap addition is to usher in an era of gas-free trading through its innovative feature called "Snap” for OKX service users.

Snap trading mode

The company made the announcement by way of a PR Newswire press release on Feb. 29. OKX asserts that Uniswap is one of the most trusted names in DeFi. As part of the integration, the Snap trading mode will be included as a feature on OKX DEX, with the objective of aggregating Uniswap’s liquidity.The feature operates directly on the OKX DEX interface by way of the UniswapX protocol. UniswapX is an immutable smart contract built with the intention to be fully permissionless. The contract cannot be modified or paused by anyone, including Uniswap Labs.

Liquidity providers pay the fee

In explaining away the technology, Jason Lau, the chief innovation officer at OKX told Cointelegraph the mechanics behind the no-fee swaps. Lau unveiled a novel model wherein liquidity providers absorb transaction fees on behalf of users.
He asserted that this approach not only enhances convenience but also facilitates cost savings for traders. Lau elaborated further, stating:
“By agreeing to a price and signing a transaction off-chain, then settling the transaction on-chain, users end up paying no gas fees because the liquidity providers will pay the fee on the user’s behalf.”

Going beyond trading fee reduction

Anticipating a positive response from DeFi enthusiasts, Lau highlighted additional features that go beyond transaction fee savings. These include the elimination of slippages, maximum extractable value (MEV) bot attacks and transaction failures, addressing prevalent concerns within the DeFi space.In tandem with the gas-free trading initiative, OKX announced a seamless integration for its wallet users within the Uniswap interface, courtesy of the Multi-Injected Provider Discovery upgrade on Ethereum, based on Ethereum Improvement Proposal (EIP)-6963.
This enhancement extends to all browser extension wallets, enabling OKX wallet users to seamlessly connect with Uniswap, facilitating activities such as cryptocurrency swapping, NFT trading, liquidity pool participation and decentralized application (dApp) development.
Positioning this integration as a pivotal addition to their ecosystem, Lau reiterated OKX's commitment to broadening user access to diverse on-chain use cases. He expressed enthusiasm for ongoing development initiatives and urged users to actively contribute feedback for further enhancements.
The crypto exchange platform achieved further technical progress recently, with the addition of support for atomicals, runes, doginals and stamps to its Web3 wallet. Providing further detail on these additions last month, the company said that they were part of a "first-to-market" initiative relative to Bitcoin NFTs.
Alongside technical advancements like these, earlier this week it emerged that the company was further advancing its market expansion strategy, through the launch of OKX TR, its Turkish platform.
With OKX pioneering gas-free trading and bolstering user accessibility to decentralized finance, the convergence of traditional finance and blockchain technology accelerates, indicating an ongoing transformative shift in the crypto space.
Comments
To comment, please sign in.
Article has no comments yet.