The v2 version of the decentralized exchange Uniswap coming after the Ethereum Dencun update
If you’ve been eagerly waiting for the long-awaited version 4 of the decentralized exchange Uniswap, then here’s some good news for you. The Uniswap Foundation has announced that they will be releasing v4 of the platform in the third quarter of this year. However, there’s a catch – they are waiting for the Dencun update of the Ethereum blockchain to be successfully executed before rolling out their new version. This update is scheduled for March 13th and is expected to make the network more scalable by compressing block data and storing part of it separately.
Once this update is implemented, it will open doors for Uniswap to explore new functionalities within its own platform, expand connections with the Ethereum network, and offer more efficient products. Currently, the Uniswap team is in the “Code Freeze” phase, where they are completing the main code, conducting tests, optimizing gas, improving security, and finalizing the periphery. The next phase will involve testing their infrastructure with preliminary checks at specific auditing companies and a community audit contest. After this, v4 of Uniswap will be distributed in testnet before making small modifications to the code and launching it officially.
With v4, Uniswap plans to leverage recent Ethereum improvement proposals (EIP) such as EIP-4788, EIP-1153, and EIP-4844 for a more efficient utilization of liquidity in the platform’s pools. Additionally, they will be introducing the concept of “hooks” for the first time in DeFi, allowing custom logic injection at specifically designated points for pools, swaps, fees, and other LP positions.
The positive effects of Dencun on the Ethereum blockchain
While Uniswap awaits the implementation of Dencun on the Ethereum blockchain, let’s take a moment to understand what this upgrade entails. Dencun aims to introduce several key changes including proto-danksharding which will help reduce transaction costs on Ethereum’s rollups. It will also compress transaction data contained in rollups and store part of it externally to reduce block weight and ultimately reduce fees for end users.
This update is expected to revolutionize network scaling by bringing greater efficiency and a larger influx of new users into projects like Celestia, Avail, and EigenDA. With a growing L2 market on Ethereum experiencing an increase in Total Value Locked (TVL), Dencun is poised to bring about significant changes in terms of network scaling and user experience.
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