Deployment addresses of Router V2 smart contracts

Multi-chain Exchanges

Single-chain Exchanges

What is Router V2?

Router V2 is a smart contract of decentralized exchanges that provides a set of functions for adding liquidity, its management, and token trading. It is the second and currently the most common generation of smart contracts for decentralized asset exchange, developed by Uniswap and eventually adopted by most popular decentralized exchanges, such as Pancakeswap, SushiSwap and others.

Why do we need Router V2 deployment addresses?

When deploying an ERC-20 token that contains extensions, it is most often required to enter the V2 router address of the decentralized exchange where the token will be deployed. But why?

The short answer is that in order for the extensions (that change the token's behavior during trading) to work properly, the token's smart contract (further - token contract) needs to directly read and write actual information from the decentralized exchange's protocols. To do this - token contract should have information about router address of decentralized exchange, so it can be reached during the execution of extensions functions.

But to answer this question more fully, we must delve a little deeper into the structure of the token contract.

For the sake of clarity, we'll look at this using the Fee On Buy/Sell extension as an example. This extension contributes a certain % of the traded amount of tokens (fee) to the developer when buying and selling.

In order to process any token swap, e.g. to be charged a tax, it is necessary to determine whether an individual transfer is a buy or a sell. After all, by default, all transfers are processed by a single function, regardless of their purpose.

Retreating a bit to the topic of how a decentralized exchanger works, let me remind you: A purchase is a transfer of tokens from the liquidity pool to the user's wallet, while a sale is a transfer of tokens from the user's wallet to the liquidity pool.

Here the smart contract of the DEX router of the exchange comes into play. This is the one from which we get information about the address of the liquidity pool of this token.

Now we can use the address of the liquidity pool to identify the purpose of the transaction and handle it. In this case, to collect a certain % of fees from buying and selling.

This is why we enter the router address when deploying the smart contract token. This also explains why the smart contract may not work properly if you enter the wrong router address - in this case it will try to receive information from an address that has no proper interface or is not a smart contract at all.

Therefore, we strongly recommend that you take special care when you enter the router address.

Why to use V2 contracts?

Despite the variety of decentralized exchange protocol types, from the more advanced Uniswap V3 protocols to the unique solutions of individual exchanges, V2 protocols have two advantages from which all others derive: simplicity and reliability.

V2 protocols have an uncomplicated structure, this makes them easy to understand and implement in tokens and decentralized applications. Their reliability is proven over time and thanks to this you can be sure that the funds invested in this protocol will be safe.

These two advantages lead to the third: popularity. UniswapV2 protocols are used in most decentralized exchanges on all EVM-compatible blockchains. This allows you to take advantage of your token by running it on different blockchains and DEXs by simply changing the router address.

What do you need to know using V2 liquidity?

When using contracts written to be used with V2 liquidity, you should be careful when adding liquidity. Most DEXs offer multiple types of liquidity to choose from (usually between V2 and V3, but exchanges also have their own unique solutions). Therefore, it is important to make sure that you add exactly V2 liquidity. Otherwise, as mentioned above, the token contract extensions may not work properly because the required interface of RouterV2 is missing.

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