Uniswap Watermarks Trades Amid EU Compliance Efforts

Uniswap has made adjustments to its trading functionality in order to comply with European Union regulations. According to Hayden Adams, Uniswap's founder, the platform will now watermark trades by changing its routing. This means that Uniswap will no longer always select the best possible route for trades.

Adams noted that this adjustment has 'no practical effect on execution quality,' although he joked that one would need to redefine what is considered practical in order to consider it true.

In related news, Adams previously highlighted the growing importance of concentrated liquidity solutions, which now account for most on-chain trading activity. The v4 hooks on Uniswap have also enabled rapid market creation.