Uniswap launched a feature called Aggregator Hooks on October 22 that lets its trading system access funds available on other decentralized exchanges.
The change also increases the trading activity that contributes to UNI burns. Uniswap says swaps routed through these outside sources pay protocol fees, which means their use will lead to the removal of UNI tokens from circulation.
More places to find a trade
When someone exchanges one token for another, the funds needed to complete that trade can sit across different platforms.
This new feature allows Uniswap to check connected outside sources with its own trading pools. Its system compares quotes and builds a route to allow the swap to be completed.
For regular users, the change happens behind the scenes. The web app includes those sources automatically, and the trade settles in one transaction without an additional approval step required from the user, according to the announcement seen from Uniswap.
This expands the options available to its trading system.
How outside trades connect to UNI
The fee connection gives UNI holders another reason to watch the adoption of the feature.
This is because trades using the connected sources pay Uniswap protocol fees that contribute to token burns.
What the launch then does is it adds another activity that can support those burns. But how much it adds will depend on the trading it sees through these new routes.
Uniswap’s post did not provide any figures for additional fees that have been collected or UNI burnt since launch. The effect on supply remains to be seen as usage develops.
A substantial trading business already exists
According to the DefiLlama data reviewed by AMBCrypto, there was about $69.4 billion in trading volume over 30 days. It also recorded around $8.4 million in protocol revenue during that period.
Those figures show the extent of the current Uniswap activity. What they mostly show is trading before the October 22 launch, which means that what the new feature contributes cannot be really calculated yet.
For now, the confirmed development is broader access to trading sources and a fee connection to UNI burns. Subsequent usage and revenue data will help to see how much the expansion adds.
Final Summary
- Uniswap now automatically includes outside trading sources across supported networks.
- These fees contribute to UNI burns, but the additional impact is not known yet.
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