Uniswap Labs has rolled out Permit2, a smart contract allowing users to enjoy gasless token approvals.
The new release is said to reduce the cost burden for users occasioned by the need for continuous approvals on the same token when Uniswap rolls out a new update to its router.
Permit2 for gassless token approvals on Uniswap DEX
Uniswap Labs announced the rollout of Permit2 via Twitter on Friday. Permit2 is a smart contract first announced last year that is designed to make token approval simpler on the popular DEX.
“Permit2 is a token approval contract that can safely share and manage token approvals across different smart contracts. As more projects integrate with Permit2, we can standardize token approvals across all applications. In turn, Permit2 will improve the user experience by reducing transaction costs while improving smart contract security.”
Uniswap Labs.
With Permit2, users only need to pay a one-time gas fee to approve a token for trading.
Token approval in the DeFi space allows an app to spend tokens from a user’s wallet. It usually requires the payment of a small transaction fee to cover gas. Subsequently, the user should not need to pay any gas fee to trade that token.
However, updates to an app’s router can erase previous token approvals requiring the user to repeat the process.
Uniswap Labs say Permit2 eliminates the aforementioned problem. Thus, even if Uniswap updates its routers, users won’t have to repeat the process. Permit2 token approvals last for 30 days.
Subsequent token approvals only need a gasless signature from the user’s wallets. The 30-day limit is because infinite token approvals are deemed a security risk in the DeFi space. Hackers can use such a situation to drain a victim’s wallet.
Permit2 is open source, stated the Uniswap Labs announcement. Developers can integrate the smart contract into their own protocols. Uniswap Labs say developers can use the smart contract for a variety of uses, including universal token approvals, shared approval management, and batch revoking of token approvals.
Today’s announcement comes as Uniswap is also expanding its DEX footprint across more chains. The Uniswap DAO is currently voting to deploy its version 3 on the BNB Chain. Uniswap hopes to attain up to 50% of the TVL already achieved by PancakeSwap, the leading DEX on the BNB Chain.
Source: https://crypto.news/uniswap-labs-releases-gasless-token-approvals-on-dex/