The Uniswap UNI
+5.47%
This time frame depends on the implementation of Ethereum’s upcoming Dencun hard fork, which will take place in March. The V4 upgrade will follow a comprehensive security audit of the protocol, starting with Dencun.
Uniswap is the most widely used automated market maker – a decentralized exchange that facilitates trading between tokens by using liquidity pools rather than relying on traditional order books in which buyers and sellers match orders directly.
Uniswap was launched in 2018 and has gone through several iterations, with Uniswap V3 being the current one, introduced in May 2021. The key feature of V3 is that it supports ‘concentrated liquidity’ – allowing liquidity providers to choose specific price ranges in which their capital operates. earn higher compensation.
The V4 draft code signals a shift towards a more modular structure for Uniswap, mainly through the inclusion of ‘hooks’. These hooks are smart contracts that will facilitate additional customization in Uniswap’s liquidity pools using methods such as dynamic fees, on-chain limit orders, and custom on-chain oracles.
The V4 release will also introduce a “flash accounting” system that will result in lower fees for liquidity providers. The mechanism is based on ‘temporary storage’, which is activated by the proposed EIP-1153 change in Ethereum’s protocol, which will be integrated into the upcoming Dencun upgrade.
