https://etherscan.io/tx/0x8e17442bb80f204693ed5e39bad0b6d3ab466d33c411bc84f15af694f4cfa293
gm or gn.
Please find below our year end update.
Development Update
We have not dived too deep into the technical details of Xchange, but we want to reveal some specific enhancements to the swap experience we will be releasing that are critical for decentralization and providing the most financially advantageous swap experience.
Many decentralized exchanges fork the Uniswap UI and either use existing centralized API's or host their own centralized backend API's. We have taken care to remove all centralized API communication and are relying solely on on-chain data for the functionality of the swap.
We will initially support Metamask and Wallet Connect as identity providers and will continue to add more as the market need exists (Coinbase Wallet, etc.).
We thought long and hard about the market migration to Xchange (and the possibility that some pairs remain on Uniswap indefinitely to take advantage of the higher liquidity provider fees such as on large stablecoin pairs). In addition to the core routing operations between pairs on Xchange (e.g. WETH -> Token A -> Token B ) we are be supporting cross DEX liquidity routing. This is to support swaps like WETH -> Uniswap Pair for Token A -> Xchange Swap for Token B. In addition, our routing algorithm will select the most advantageous route to take either on Uniswap, Xchange, or across multiple pairs on both exchanges. The routing algorithm will initially be solely client side (with contract support to make the optimal swaps in a single transaction). In the future we will provide a limited on chain cross-dex routing algorithm to allow for on-chain integrations. This may seem like a great but optional feature, but after running through many simulations of liquidity scenarios we identified significant risk of bad actors creating shallow liquidity pairs on Xchange for assets like USDC and creating financially inadvantageous swap routes. This feature will also enable a seamless migration process of pairs that eventually choose to migrate permanently to Xchange. Users using Xchange for swapping on the Uniswap pair will effectively see no difference in their swap experience post migration to Xchange pairs. We also will continue to iterate on this cross DEX swap capability to ensure Xchange users have access to the deepest liquidity pairs available on the blockchain.
