ERC-7683 seeks to combat liquidity fragmentation by providing a standardized framework for cross-chain trading.<\/p>\n
Uniswap has joined forces with Across Protocol to propose a new API standard facilitating cross-chain trading.<\/p>\n
ERC-7683 seeks to address liquidity fragmentation resulting from the steady increase in Layer 1 and Layer 2 networks by providing a \u201cuniversal filler network\u201d for facilitating cross-chain swaps. Uniswap tweeted<\/a> about the standard on May 28, however, ERC-7683 was first articulated<\/a> on the Ethereum Wizards forum in April.<\/p>\n Traders use ERC-7683 to sign a cross-chain order, after which their funds are escrowed into a settlement contract. Liquidity providers act as \u201cfillers\u201d competing to facilitate trade settlement at the best possible price. After a filler is selected, the trade is executed and funds are released.<\/p>\n The teams said the system offers reduced gas fees for traders and lowers the barriers to entry for fillers.<\/p>\n \u201cWhen a protocol adopts intent-based execution, they are required to build, attract, and retain their own relayer or filler ecosystem,\u201d tweeted<\/a> Across Protocol. \u201cERC-7683 proposes that all cross-chain intents follow the same order structure so that a universal, shared filler network can fulfill transactions.\u201d<\/p>\n \u201cToday\u2019s intents-based systems are fragmented, each with their own set of fillers and no unified cross-chain standard,\u201d Uniswap said. \u201cBy implementing a standard, cross-chain intents systems can interoperate and share infrastructure.\u201d<\/p>\n Work towards ERC-7683 comes as the number of blockchains continues to grow, posing challenges in the form of fragmented liquidity<\/a> \u2014 where on-chain liquidity is disparately spread across multiple web3 networks.<\/p>\n L2beat, an on-chain data provider tracking Layer 2 networks, currently tracks the TVL for 55 active chains and lists 43 upcoming projects \u2014 a nearly 50%<\/a> increase since the start of 2024<\/p>\n Bobby Ong, the co-founder of the web3 data platform, CoinGecko, tweeted the number of networks tracked by CoinGecko is expected to surpass 1,000 in 2024, up from 158 currently. <\/p>\n