ERC-7683 seeks to fight liquidity fragmentation by offering a standardized framework for cross-chain buying and selling.
Uniswap has joined forces with Throughout Protocol to suggest a brand new API customary facilitating cross-chain buying and selling.
ERC-7683 seeks to handle liquidity fragmentation ensuing from the regular enhance in Layer 1 and Layer 2 networks by offering a “common filler community” for facilitating cross-chain swaps. Uniswap tweeted about the usual on Might 28, nevertheless, ERC-7683 was first articulated on the Ethereum Wizards discussion board in April.
Merchants use ERC-7683 to signal a cross-chain order, after which their funds are escrowed right into a settlement contract. Liquidity suppliers act as “fillers” competing to facilitate commerce settlement at the absolute best value. After a filler is chosen, the commerce is executed and funds are launched.
The groups mentioned the system presents lowered gasoline charges for merchants and lowers the limitations to entry for fillers.
“When a protocol adopts intent-based execution, they’re required to construct, entice, and retain their very own relayer or filler ecosystem,” tweeted Throughout Protocol. “ERC-7683 proposes that every one cross-chain intents observe the identical order construction so {that a} common, shared filler community can fulfill transactions.”
“Immediately’s intents-based techniques are fragmented, every with their very own set of fillers and no unified cross-chain customary,” Uniswap mentioned. “By implementing a regular, cross-chain intents techniques can interoperate and share infrastructure.”
Work in direction of ERC-7683 comes because the variety of blockchains continues to develop, posing challenges within the type of fragmented liquidity — the place on-chain liquidity is disparately unfold throughout a number of web3 networks.
L2beat, an on-chain information supplier monitoring Layer 2 networks, presently tracks the TVL for 55 lively chains and lists 43 upcoming initiatives — a virtually 50% enhance because the begin of 2024
Bobby Ong, the co-founder of the web3 information platform, CoinGecko, tweeted the variety of networks tracked by CoinGecko is anticipated to surpass 1,000 in 2024, up from 158 presently.
“Everyone seems to be launching a series,” Ong mentioned. “At this charge, all main crypto apps may have their very own rollup.”
