Uniswap V4 Launch Scheduled for Q3 2024
The Uniswap Foundation has announced that the launch of Uniswap’s version 4 protocol is tentatively set for the third quarter of this year. The exact timing depends on the implementation of Ethereum’s upcoming Dencun hard fork, scheduled for March. The release of Uniswap V4 will follow a thorough security audit starting from Dencun.
Uniswap: A Popular Automated Market Maker
Uniswap is currently the most widely used automated market maker (AMM), which is a decentralized exchange that enables token trading through liquidity pools instead of traditional order books. Since its launch in 2018, Uniswap has gone through multiple iterations, with Uniswap V3 being the current version introduced in May 2021. V3 introduced the concept of “concentrated liquidity,” allowing liquidity providers to select specific price ranges to earn higher fees.
Uniswap V4: Modular Structure and New Features
The upcoming Uniswap V4 will bring a more modular structure to the protocol, primarily through the incorporation of “hooks.” These smart contracts will enable additional customization in Uniswap’s liquidity pools, including dynamic fees, on-chain limit orders, and customized on-chain oracles.
Lower Fees with Flash Accounting
Uniswap V4 will also introduce a “flash accounting” system that will reduce fees for liquidity providers. This mechanism relies on “transient storage,” which will be activated by Ethereum’s proposed EIP-1153 change in the upcoming Dencun upgrade.
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