Uniswap Labs has taken the opportunity to deliver two fresh smart contracts. One of them is Permit2, which allows token approvals to be split and controlled across various applications. This helps build a more effective, secure, and competitively priced UX. The other smart contract is the Universal Router, which combines ERC20 and NFT swapping with a sole swap router.
It is incorporated with Permit2 and allows users to carry out swaps regarding various tokens and NFTs through a single swap and, in the bargain, benefit from lesser fees. Initially, the idea behind the two smart contracts was for their own use. However, realization dawned that it would also be beneficial for other applications as well. It is also useful for SDKs and a two-week bug bounty.
Where Permit2 is concerned, with further projects incorporating it, the token approvals will be standardized across all applications. In that case, Permit2 will carry out enhancements in user exposure through the lessening of translation fees, along with making it more secure. Permit2 also delivers signature-oriented approvals and transfers in terms of any ERC20 token.
It also has an array of additional features, like permits for every token. Then there are the expiring approvals as well as the signature-oriented transfers. There are also batch approvals and transfers, along with batch cancellation allowances. On the whole, Permit2 is a non-scalable, unowned, and open-source contract that is positioned on a similar address through Ethereum, Optimism, as well as Arbitrum, Polygon, and Celo.
In the case of the Universal Router, it is a new-age router that brings together token and NFT trades into a single swap router that is very malleable and secure. The swap routers can identify areas of lower pricing and implement them at the lowest gas fees.
With the help of the Universal Router, users can carry out various swaps on Uniswap V2 and V3 and purchase NFTs from different sources in a single transaction. The Universal Router is incorporated with Permit2. It is also a non-scalable, unowned, and open-source contract positioned on a similar address through Ethereum, Optimism, Arbitrum, Polygon, and Celo.