Uniswap’s Highly Anticipated V4 Update: Here’s Why It Matters

Sahana Kiran
Source – Binance Academy

As Ethereum’s highly anticipated Dencun upgrade approaches, set to take place between March 13 and 16, the blockchain community is eagerly anticipating the deployment of proto-dank sharding and innovative smart contract functionalities. Among the developers eagerly awaiting this upgrade are the creators of Uniswap (UNI), the decentralized exchange (DEX) platform renowned for its pivotal role in the DeFi landscape. The network’s latest iteration, the Uniswap V4 update, is poised to be unveiled shortly after the implementation of the Dencun upgrade.

In a recent announcement shared through its official channels, the Foundation outlined its strategic roadmap for the rollout of Uniswap V4. The foundation disclosed that it is presently in the “Code Freeze” phase, concentrating on completing core code development, conducting rigorous testing, optimizing gas usage, enhancing security measures, and finalizing auxiliary features.

Following this phase, the Uniswap Foundation intends to subject Uniswap V4’s code to thorough audits conducted by professional audit firms. It also intends to engage the community in an audit contest. The objective is to ensure that Uniswap V4 possesses the highest level of security and reliability. The update intends to make it the “most thoroughly audited code ever deployed on Ethereum.” Simultaneously, the decentralized exchange will undergo deployment on the testnet as the team makes final adjustments and refinements.

As outlined by the Uniswap Foundation, the third phase of the rollout is scheduled to witness the official deployment of Uniswap V4 on the Ethereum mainnet. This will occur in the third quarter of 2024. However, the foundation underscored that this timeline is subject to change. This depends on the progress and outcome of the impending Dencun upgrade on Ethereum.

Also Read: Uniswap V4 Explained

Here’s how UNI reacted to this update

The announcement of the impending launch of the Uniswap V4 update has already made a palpable impact on the market. The price of UNI experienced a significant surge to $7.52 following a 3% daily increase. Over the past week, the altcoin has seen gains of 15%, reflecting investor confidence and enthusiasm surrounding the forthcoming upgrade.

Also Read: Ripple (XRP) Adds $1B to its Market Cap in Just 24 Hours

In summary, the forthcoming release of Uniswap V4 represents a monumental milestone in the evolution of decentralized finance (DeFi). It promises to introduce greater efficiency, flexibility, and customization to the Uniswap platform.