In a historic move, Uniswap has partnered with Across Protocol to introduce a pioneering API standard that streamlines cross-chain trading. Dubbed ERC-7683, this innovative solution tackles the pressing issue of liquidity fragmentation, a byproduct of the rapid growth in Layer 1 and Layer 2 networks. By establishing a "universal filler network," ERC-7683 facilitates cross-chain swaps, promoting a more interconnected and efficient trading ecosystem.

Uniswap first announced the standard on May 28, but its conceptual roots can be traced back to the Ethereum Wizards forum in April. The ERC-7683 protocol empowers traders to sign cross-chain orders, which are then escrowed into a settlement contract. Liquidity providers, acting as "fillers," compete to execute trades at the best possible price. Once a filler is selected, the trade is executed, and funds are released. This system offers reduced gas fees for traders and lowers the barriers to entry for fillers, making it a game-changer in the world of cross-chain trading.

Across Protocol highlighted the significance of this collaboration, stating, "When a protocol adopts intent-based execution, they are required to build, attract, and retain their own relayer or filler ecosystem." ERC-7683 proposes a unified order structure, enabling a shared filler network to fulfill transactions seamlessly. Uniswap echoed this sentiment, emphasizing that today's intents-based systems are fragmented, with each having its own set of fillers and no unified cross-chain standard. By implementing a standard, cross-chain intents systems can interoperate and share infrastructure, paving the way for a more harmonious trading environment.

The introduction of ERC-7683 comes at a critical juncture, as the number of blockchains continues to proliferate, leading to fragmented liquidity. On-chain liquidity is dispersed across multiple web3 networks, posing significant challenges. L2beat, an on-chain data provider, tracks the TVL for 55 active chains and lists 43 upcoming projects, marking a nearly 50% increase since the start of 2024. CoinGecko co-founder Bobby Ong predicted that the number of networks tracked by CoinGecko will surpass 1,000 in 2024, up from 158 currently. This rapid growth underscores the need for a unified standard like ERC-7683.

The collaboration between Uniswap and Across Protocol marks a significant milestone in the evolution of cross-chain trading. By introducing a standardized framework, they have addressed a critical pain point in the industry. As the number of blockchains continues to grow, the importance of ERC-7683 will only continue to increase. Its impact will be felt far beyond this individual solution, shaping the future of cross-chain trading and paving the way for a more interconnected and efficient trading ecosystem.