Today, Uniswap, a leading decentralized exchange protocol, has announced its ambitious vision for Uniswap v4, considering it as a fundamental piece of financial infrastructure that should be developed collaboratively with community involvement. In an effort to foster transparency and openness, the initial implementation code for Uniswap v4 can be accessed on the project’s GitHub repository.
One of the key advancements introduced in Uniswap v4 is the concept of “hooks,” which revolutionizes liquidity pool customization. Hooks enable the addition of entirely new functionalities to pools, such as the dynamic adjustment of fees or the creation of new order types. To showcase the expressive nature and capabilities of hooks, Uniswap has developed sample hooks, including the time-weighted average market maker (TWAMM), customized on-chain oracles, and on-chain limit orders.
The flexibility offered by customizable pools is expected to result in a diverse array of pools with various characteristics and sizes. In anticipation of this multiplicity, Uniswap has implemented several architectural improvements, as detailed in their comprehensive technical whitepaper outlining the vision for v4. These enhancements include consolidating v4 pools into a single contract, leading to a staggering 99% reduction in pool creation costs. Additionally, a novel “flash accounting” system has been devised, significantly reducing the expenses associated with routing across multiple pools.
By providing custom pools and singleton functionality, Uniswap v4 enables developers to leverage the security and network effects of the Uniswap ecosystem without having to build their own automated market maker (AMM) from scratch. Uniswap aims to foster rapid and expressive AMM innovation within a robust ecosystem.
Uniswap extends an invitation to developers, urging them to engage in brainstorming sessions to conceive groundbreaking hook designs and integrations. The developers are encouraged to contribute to the core codebase of Uniswap v4 by adhering to the provided contribution guidelines. Uniswap firmly believes that the combined endeavors of the community and developers will profoundly influence the trajectory of Uniswap v4. In the spirit of unity, Uniswap calls upon all stakeholders to join forces in constructing an influential and cooperative v4 ecosystem.