Uniswap launched its services in November 2018. It provides decentralized financial services based on the Ethereum blockchain. The exchange had grown to become one of the most significant decentralized exchanges. Uniswap also recently launched on the BNB Chain after the proposal passed with flying colors.
Uniswap Labs, the development team behind the DEX Uniswap, has revealed its vision for the upcoming version of its cryptocurrency exchange platform, Uniswap v4.
“We are releasing the draft code now so that v4 can be built in public, with open feedback and meaningful community contribution. We expect this will be a months-long process.”
The lab is Focusing on inviting community feedback
Uniswap v3 introduced innovative features such as oracles, enabling the integration of real-time, on-chain pricing data. However, these enhancements came with the tradeoff of higher fees and increased complexity in the code.
Recognizing the need for a more inclusive approach, the team is introducing “hooks” in v4, aiming to democratize tradeoff decisions.
Hooks are contract-based functionalities that operate at different stages of a pool action’s lifecycle. This allows individual pools to tailor their tradeoffs to specific needs and preferences. Pools can choose to adopt similar tradeoffs as those in Uniswap v3, or they can introduce entirely new functionalities.
Also read: Polygon Unveils Details of Polygon 2.0
Noteworthy enhancements expected in v4 include the ability for pools to support dynamic fees, enable on-chain limit orders, and even serve as time-weighted average market makers (TWAMM) for efficient handling of large orders over time.
The introduction of hooks in v4 signifies a significant step towards empowering users to make personalized decisions in liquidity provision.