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The Uniswap Foundation has officially announced that its anticipated Uniswap v4 upgrade is scheduled for release in Q3 2024.
Per the Feb. 15 X announcement, the upcoming update aims to improve the decentralized finance (defi) protocol’s functionality and efficiency by integrating features from the upcoming Ethereum Dencun upgrade.
The upgrade incorporates specific Ethereum Improvement Proposals (EIPs), EIP-4788, EIP-1153, and EIP-4844, aiming to enhance the protocol’s operations and user experience on the Ethereum blockchain.
A notable feature of the Uniswap v4 is the implementation of “hooks.” This functionality allows the integration of custom logic at critical points within the protocol, such as pools, swaps, fees, and liquidity provider positions.
Introduced in a draft by the Uniswap Foundation on June 13, 2023, hooks are designed to enable dynamic adjustments and extend the range of applications for smart contracts, leading to potential reductions in fees and improved asset management for users.
The upgrade aligns with the Ethereum Dencun upgrade, particularly through the adoption of EIP-1153, which introduces transient storage. This addition allows developers to create optimizations for smart contracts, aiming to lower gas fees for users involved in swapping activities or utilizing instant swap features.
Uniswap has announced a comprehensive auditing process for the v4 codebase, described as the most thoroughly audited code to be deployed on Ethereum. This includes internal reviews, detailed third-party audits in partnership with leading web3 audit firms, and a community audit contest, ensuring high security and reliability standards before its launch.
In preparation for v4, the codebase is currently undergoing security enhancements and is in a frozen state as it enters its test net phase. Additionally, Uniswap has launched a $10 million UNI airdrop initiative to thank its community and encourage wider participation in the DeFi ecosystem.
Founded in 2018 by Hayden Adams, a former Siemens mechanical engineer, Uniswap has become a key player in the defi space. Utilizing the Solidity programming language on the Ethereum blockchain, it provides a platform for liquidity provision and decentralized token trading, including crypto-to-crypto and crypto-to-stablecoin pairs. Its open-source approach has fostered a large community, with over three million unique senders contributing to its development.
