A new Permit2 approval mechanism has been developed by the Uniswap decentralized exchange team to enable smart contracts to transfer tokens on behalf of users.
The developers noted that multiple transfers can lead to frustration and security risks due to gas payments. Permit2 empowers network members to set permissions and approve token transfers using a single signature, resulting in significantly lower fees.
Uniswap has also introduced a “universal router” for token and NFT exchanges, which is optimized to find the best prices and complete deals with minimal gas costs.
Users can perform multiple exchanges on Uniswap V2 and V3 and purchase NFTs on various marketplaces in a single transaction using the new smart contract, which is interconnected with Permit2.
Consequently, users can directly pass permissions from Permit2 to the router without additional computations.