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All you need to know about Uniswap’s latest upgrade

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Uniswap has released the draft code of V4 for public access and invited community members for feedback before a full-fledged launch.

All you need to know about Uniswap's latest upgrade

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  • Uniswap said that V4 would result in 99% reduction in pool creation gas costs.
  • Over the last week, Uniswap volume rose by 7.39%, an uptrend seen across major DEXs.

The world’s largest decentralized exchange by volume Uniswap [UNI] has unveiled the vision for its latest version V4. The new protocol is aimed at increasing efficiency and reducing costs.


Is your portfolio green? Check the Uniswap Profit Calculator


The decentralized finance (DeFi) behemoth released the draft code of V4 for public access and invited community members for feedback before a full-fledged launch, which could take months as per the blog post.

The euphoria surrounding this development caused native token UNI to lift up to $4.45 on 13 June. However, the jump was short-lived as UNI retreated to $4.27 at the time of publication, down 1.2% in the 24-hour period, as per CoinMarketCap.

 

What’s new in Uniswap V4?

Uniswap was the first to popularize the mechanism of concentrated liquidity through the launch of its V3. This gave liquidity providers (LPs) more flexibility in how they wanted to deploy liquidity.

The latest version V4 advances things further by introducing the idea of customizable liquidity through the usage of “hooks”.

Hooks, as defined by Uniswap, are plugins which will enable users to create custom liquidity pools to control how pools, swaps, fees interact with each other.

Uniswap outlined other use cases that developers might leverage, such as implementing on-chain limit orders, dynamic fees, and many more automated functions that could be done at a specific time in a pool’s lifespan.

Apart from hooks, the other betterment will be clubbing all pools in a single smart contract. In V3, a new contract has to be deployed every time a pool is created. This new architecture of V4 would result in 99% reduction in pool creation gas costs.

Uniswap gains from SEC lawsuit

Uniswap was the undisputed leader of DEXs with a 24-hour volume of nearly $880 million, more than double the total volume of the second-ranked PancakeSwap [CAKE], as per DeFiLlama.

Over the last week, the volume rose by 7.39%, an uptrend seen across major DEXs. The recent action by U.S. regulators on their centralized counterparts like Binance and Coinbase could be the primary driver behind the surge.

 


How much are 1,10,100 UNIs worth today?


UNI holders still at a loss

Despite gains on DeFi front, UNI extended its losing streak. The 30-day MVRV Ratio revealed that holders would incur a loss of 9.63% on average if they were to sell their holdings at press time.

The investors’ confidence in the potential of UNI fell after a temporary lift following SEC’s lawsuit.

Source: Santiment

 

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Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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