Uniswap to roll out 'Continuous Clearing Auctions' on main frontend, reshaping its token launch process

Uniswap Labs is rolling out its liquidity boosting “Continuous Clearing Auctions” protocol on its main web app, essentially introducing it to the masses for the first time and potentially reshaping how tokens are launched on the largest Ethereum-based DEX, according to an announcement on Wednesday. 

These permissionless, onchain auctions, first conceptually introduced late last year, provide a price discovery mechanism for “new and low-liquidity tokens.” Extending CCAs to the Uni frontend will help users easily discover auctions, place bids, and claim tokens directly from the interface.

“Liquidity formation often happens behind closed doors, creating information gaps and thin, unstable markets once tokens trade openly,” Uniswap Labs wrote. “With CCA, auctions run fully onchain, with transparent pricing, bidding, and settlement.” 

In addition to boosting transparency, CCAs will also minimize the impact of trading bots programmed to snipe liquidity during token launches. This is because Continuous Clearing Auctions introduce tokens at a slower pace to match actual buying demand, with an autonomous system automatically calculating the fair market price.

When the auction is over, buyers receive tokens, and real liquidity is automatically added to a Uniswap v4 trading pool. 

“For new assets, this means users can participate at the auction stage before tokens are widely available for trading on the interface,” Uniswap said. “For existing assets, this means teams can use the same mechanism to distribute supply and bootstrap liquidity.”

Frontend swap

While not an overhaul of the Uniswap protocol in itself, introducing CCAs as a core offering on its main frontend could radically reshape Uniswap’s token launch process, essentially by crowd-sourcing a token's price and smoothing volatility. 

Uniswap's protocol contracts for Continuous Clearing Auctions are already live on the Ethereum main chain and the Unichain, Arbitrum, and Base Layer 2s.

According to Uniswap, Aztec ran the first token distribution using a Continuous Clearing Auction in November, raising $60 million from more than 17,000 bidders, and said it detected “no instances of sniping or automated manipulation.”

“The entire auction happened fully onchain, giving participants a real-time view into how the market formed,” Uniswap added. 

Uniswap Labs will start displaying “ongoing and upcoming CCAs” on the frontend, meaning developers will no longer have to build custom frontends for their auctions.

The system will also let projects define how many tokens will be offered, a starting price, and how long the auction will run, as well as customizing other aspects, like adding ZK Passport as a verification tool.