Before officially launching Uniswap V4, the company aims to gather feedback from the public.
On June 13th, the decentralized crypto exchange (DEX) Uniswap founder Hayden Adams revealed that the preliminary version of Uniswap V4 was released.
The introduction of this new code, featuring what is known as "hooks" or plugins, will empower developers to engineer tailor-made liquidity pools.
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As per Adams' blog post, the "hooks" featured in the V4 release will enable developers to devise on-chain limit orders, automate deposits into lending protocols, create liquidity provider (LP) fees with auto-compounding, and add many other innovations to the exchange once the implementation is completed.
The public release of the source code is the precursor to the launch of a new version of Uniswap. The deployment of V4 will take place once a final version is agreed upon, with previous versions continuing to be available.
Adams emphasizes the goal of Uniswap V4 as a means to facilitate pool deployers in introducing code that "performs a designated action at key points throughout the pool’s lifecycle – like before or after a swap, or before or after an LP position is changed."
In particular, "hooks" could include code that can reinvest fees into an LP's pool or lend out inventory when a pool remains idle.
Uniswap Labs Engineer, Sara Reynolds, expressed that the novel version will enable automated market maker (AMM) exchanges, such as Uniswap, to evolve at an unprecedented pace, courtesy of the inherent customizability it offers.
In V4 what we really start to see is sort of this ‘primitive’ for customized logic <...> and that’s really exciting because I think it will really start to evolve AMM innovation quite fast.
The Uniswap Labs Head of Communications, Bridget Frey, concurred with this sentiment, stating that the new version would accelerate innovation by allowing projects to build upon Uniswap’s security and liquidity with a hook contract.
The release of Uniswap's Version 4 code comes amid a surge of new users flocking to decentralized exchanges. Following SEC's lawsuit against Binance and Coinbase, the decentralized exchanges recorded a 444% increase.
It is worth noting that two years ago, Uniswap successfully deployed its most recent version, V3, on May 4th, 2021.
Uniswap's new V4 release promises a leap forward in exchange innovation and flexibility, allowing developers to introduce new and exciting features, potentially transforming the landscape of decentralized exchanges.
