The Uniswap Foundation has officially announced the upcoming launch of Uniswap v4, setting the stage for a Q3 2024 release.
This announcement, shared on the social platform X, marks a significant milestone for the decentralised finance (DeFi) community.
The Foundation has emphasised that the v4 upgrade will undergo the most extensive auditing process to date, ensuring its seamless integration and security.
It is designed to complement Ethereum’s forthcoming Dencun upgrade and will incorporate advancements from several Ethereum Improvement Proposals (EIPs), including EIP-4788, EIP-1153, and EIP-4844.
Introduction of ‘hooks’
The integration with Ethereum’s Dencun upgrade, particularly through EIP-1153, will introduce “flash accounting”, which is a mechanism aimed at optimising gas fees.
This feature is a testament to Uniswap’s commitment to improving transaction efficiency and cost-effectiveness for its users.
Another key element in the upgrade is the introduction of “hooks”. The concept represents a significant advancement in how smart contracts can be designed and interacted with.
It was first introduced on 13 June 2023, alongside the Uniswap Foundation’s publication of the v4 draft. As revealed by the developers back then, this functionality is aimed at lowering fees and better asset management for end users.
At its core, a hook is a feature that allows developers to insert custom logic into specific points of a smart contract’s execution. This means that when certain conditions are met or specific actions are taken (like a swap or liquidity provision), the hook can trigger additional custom actions defined by the developer.
Hooks, therefore, act as entry points for extending the functionality of existing smart contracts without needing to modify their core logic.
In the case of Uniswap v4, they can be implemented in various parts of the protocol, such as liquidity pools, swap functions, fee calculations, and liquidity provider (LP) positions. When a transaction occurs that interacts with these parts of the protocol, the hook can execute predefined logic. This could include things like dynamic fee adjustments, custom swap logic and enhanced LP strategies.
According to DeFi researcher “Ignas”, Uniswap v4 is not merely an upgrade; it signifies a pivotal transformation of the protocol into a comprehensive platform. Its introduction facilitates a variety of functionalities, including on-chain limit orders and auto-compounding liquidity provider fees, likening Uniswap v4 to a foundational infrastructure for DeFi developers.
“Think of them as “plugins” or “extensions” that allow for the execution of customised code during key events within a pool”, he added, comparing them to Apple’s App Store. It, therefore, would enable third-party developers to create and launch their applications using Uniswap’s liquidity. This will address liquidity challenges, fostering innovation within the ecosystem.
The rigorous auditing process, including internal reviews, third-party audits, and a community audit contest, underscores the foundation’s dedication to security and reliability.
Its first phase includes core code completion, testing, gas optimisations, security enhancements, and finalising the periphery. The codebase is, therefore, currently frozen.
Phase two would involve comprehensive auditing by multiple audit firms and a community audit contest. In parallel, v4 will be deployed to testnet, and the last few adjustments will be made to the code.
Finally, the launch would be pushed to mainnet ETH in the third quarter in phase three of the process.
A $10 million airdrop
In anticipation of v4’s launch, Uniswap is not only focusing on technical enhancements but also on strengthening its community ties.
The platform has announced a $10 million $UNI airdrop as a token of appreciation for its users’ support and to encourage broader participation in the DeFi ecosystem.
This initiative aims to reward the community and incentivise engagement with the platform’s future developments.
Details regarding the airdrop eligibility and claim process are available on Uniswap’s official website, inviting users globally to partake in this significant milestone.
It has also encouraged users to follow the official accounts of Uniswap Foundation and Uniswap Labs for more updates as the v4 launch approaches.
