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HomeNewsUniswap V4 Goes Live: Lower Fees, Modular Design, and Multi-Chain Support

Uniswap V4 Goes Live: Lower Fees, Modular Design, and Multi-Chain Support

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  • UNI token dipped 1% post-launch; analysts monitor adoption of hooks and layer-2 expansion via Unichain.
  • Modular “hooks” allow developers to customize fees, rebalance assets, and build DeFi tools via smart contract plugins.

Uniswap deployed Version 4 of its decentralized exchange (DEX) on Friday, introducing reduced gas fees for liquidity pool creation and modular tools for developers. The upgrade, developed through open-source contributions from over 100 participants, now operates across 12 blockchain networks, including Ethereum, Arbitrum, Base, Avalanche, and BNB Chain.

Version 4 cuts gas costs for launching liquidity pools by 99.99% compared to its predecessor. The update integrates programmable “hooks”—smart contract plugins that let developers modify pool mechanics, such as fee structures or rebalancing logic. 

Over 150 hooks have been built via grants funded by the Uniswap Foundation. These plugins enable protocols to automate tasks, like adjusting fees during volatile market periods or reallocating assets to maintain liquidity ratios.

Liquidity providers (LPs) can now deposit assets into V4 pools through Uniswap’s interface. Token swaps will phase in as liquidity migrates from older versions. Since 2020, Uniswap’s V2 and V3 have executed over $2.75 trillion in cumulative trading volume.

uniswap-Volume-protocol-version
Source: DefiLlama

To mitigate risks, the team completed nine third-party audits and offered a $15.5 million reward for identifying vulnerabilities before launch.

uniswap-defi-volumen
Source: DefiLlama

The Uniswap Foundation framed V4 as a tool for blockchains to attract decentralized finance (DeFi) activity, for protocols to customize user experiences, and for developers to experiment with on-chain financial products. For example, a lending protocol could use hooks to automatically adjust collateral ratios, or a trading platform could implement time-weighted fee models.

Data shows Uniswap dominates 58% of all DEX volume. Its multi-chain expansion and fee reductions could further widen this gap, particularly as layer-2 networks like Base and Arbitrum scale Ethereum transactions.

However, technical complexity remains a barrier; smaller projects may struggle to integrate hooks without specialized developers.

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Isai Alexei
Isai Alexei
As a content creator, Isai Alexei holds a degree in Marketing, providing a solid foundation for the exploration of technology and finance. Isai's journey into the crypto space began during academic years, where the transformative potential of blockchain technology was initially grasped. Intrigued, Isai delved deeper, ultimately making the inaugural cryptocurrency investment in Bitcoin. Witnessing the evolution of the crypto landscape has been both exciting and educational. Ethereum, with its smart contract capabilities, stands out as Isai's favorite, reflecting a genuine enthusiasm for cutting-edge web3 technologies. Business Email: [email protected] Phone: +49 160 92211628
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