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HomeLearningUniswap Universal Router and Permit2 Smart Contracts Shaking the Market

Uniswap Universal Router and Permit2 Smart Contracts Shaking the Market

As a web3 enthusiast, you’ve undoubtedly had your fair share of trouble navigating the space at least once. 

Whether it’s the sheer number of platforms that offer different NFT prices, or the lackluster user experience, issues in this evergrowing field are numerous. Well, the situation might just take a turn for the better with Uniswap’s new release.  

Uniswap has launched two new smart contracts to fuel platform improvements in the DeFi space. This article will help you understand Universal Router and Permit2, as well as how they could improve your DeFi experience. 

Uniswap Universal Router Smart Contract

The first in a line of improvements coming from the largest DEX is the Universal Router smart contract. Universal Router unifies token and NFT trades into a flexible, gas-optimized, secure, and extensible swap router. It aims to improve the user experience of the platform as it becomes the default swap router for all Uniswap swaps. 

Its goal is to solve two main problems: 

Current swap routers support only one of the two tokens: ERC20 or NFTs.  Users have to approve every token on their first use. 

With the introduction of Universal Router, users can execute multiple token swaps on Uniswap’s platform, all in one transaction. 

An example provided by Uniswap showed that we can use a single transaction to use several different tokens, swap them on Uniswap V2 and V3 using a split route, wrap ETH into WETH, and buy an NFT on OpenSea. 

Universal Router Transaction Flow Example
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