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Variant | The Future of DEX Trading

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The past months have seen a shift in the decentralized exchange (DEX) landscape toward intents-based protocols, which unify offchain and onchain liquidity so traders can get a better UX with lower prices. These protocols introduce market makers, searchers, solvers, and other actors that quote orders from DEX front ends and tap into any liquidity source, including offchain centralized exchanges (CEXs). After launching UniswapX and toggling it on by default on the front end (referred to as “front end” from now on), Uniswap—the largest DEX—has become a case study on the impact of intents protocols on automated market maker (AMM) liquidity. Variant’s original thesis for UniswapX’s impact was that the fat head of liquidity (large-cap tokens) would eventually be filled by offchain sources, while the long tail of liquidity (small-cap tokens) would be routed to the AMM. Indeed, that’s what’s happening in part. However, the picture is actually a bit more nuanced. Most long tail trades are being

The Future of DEX Trading – Variant The Future of DEX Trading A UniswapX Case Study July 24, 2024 by Derek Walkush , Jack Gorman --> The past months have seen a shift in the decentralized exchange (DEX) landscape toward intents-based protocols, which unify offchain and onchain liquidity so traders can get a better UX with lower prices. These protocols introduce market makers, searchers, solvers, and other actors that quote orders from DEX front ends and tap into any liquidity source, including offchain centralized exchanges (CEXs). After launching UniswapX and toggling it on by default o

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