The Uniswap decentralized exchange team has created a new Permit2 approval mechanism that allows smart contracts to move tokens on behalf of users.
1/ Token approvals are essential but cumbersome—that’s why we built Permit2 🔐
Token approvals allow smart contracts to move tokens on behalf of users and DeFi to run smoothly. We built Permit2 make this process even better 🧵
— Uniswap Labs 🦄 (@Uniswap) April 27, 2023
According to the developers, sometimes there are situations in which several transfers are required, and therefore gas payments, which leads to “user frustration and potential security risks.”
Permit2 allows network members to set their own permissions and approve the transfer of tokens with a single signature, and also significantly reduces fees.
Uniswap has created a so-called “universal router” for token and NFT exchanges.
“The routers are optimized to find the lowest prices and complete deals with the lowest gas costs. […] With the help of the new smart contract, users will be able to perform multiple exchanges on Uniswap V2 and V3 and buy NFTs on various trading platforms in a single transaction.
Both technologies are interconnected. Thus, the user passes the permission from Permit2 directly to the router, which does not require additional calculations.
Recall that in March, the Uniswap team deployed the third version of the protocol on the BNB Chain network.
In April, the exchange community approved the integration on Polygon zkEVM.
Found a mistake in the text? Select it and press CTRL+ENTER
Cryplogger Newsletters: Keep your finger on the pulse of the bitcoin industry!
