Kydo from Native here.
Thank you, @eek637, for your post. It’s a great summary of UniswapX and the best explanation I’ve come across.
UniswapX marks a significant turning point for the DAO. It changes the power dynamics among the protocol, the Labs, and the DAO, prompting us to reconsider our roles.
The key lies in the nuances. The currently live reactor is the Exclusive Dutch Order Reactor, accessible at this address. This reactor accepts orders with an exclusiveFiller field. exclusiveFiller designates a unique filler who can execute an order before its Dutch auction start time.
This single field changes everything. It introduces another filler network, an RFQ network of Quoters. Unlike on-chain fillers, quoters compete in a (currently) private network hosted by the Labs.
Based on the available information, it’s reasonable to assume that the front-end will route through the Exclusive Dutch Order Reactor. Additionally, when a user signs an order, it can only be executed by this one reactor.
In effect, the swapping flow on Uniswap becomes “Uniswap quoter RFQ by default, Filler dutch auction for back up”
While the Labs have been operating the front-end for years, they previously lacked the ability to choose the liquidity provider; they could only select routes across pools. However, with exclusiveFiller, the Labs gain the power to choose the liquidity provider.
I believe this change is necessary for improving the user experience in trade execution. However, it significantly alters the power dynamics among the protocol, the Labs, and the DAO. This shift is also evident in the licensing of each protocol. Unlike V3 and V4, UniswapX operates under the General Public License v3.0.
In summary, UniswapX represents a crucial milestone in the DAO’s journey. Successfully navigating this milestone will bring immense benefits to the DAO.
I urge all delegates to thoroughly read this post and actively participate in this discussion.