Uniswap Foundation will launch the fourth version of the protocol in Q3 2024

The upgrade is designed to accommodate the upcoming Dencun hard fork on the Ethereum network

16.02.2024 - 08:50

3 min

What’s new? Uniswap Foundation has announced that the fourth version of the Uniswap decentralized exchange (DEX) protocol is scheduled to launch in Q3 2024. The upgrade is designed to accommodate the upcoming Dencun hard fork on the Ethereum network and implements key features from the Ethereum Improvement Proposals (EIPs, specifically EIP-4788, EIP-1153, and EIP-4844). This will improve the functionality and efficiency of the decentralized protocol.

Source: Twitter.com

What else is known? A key feature that will be implemented once Uniswap v4 is deployed is the concept of hooks, which allows custom logic to be implemented at designated points for pools, swaps, fees, and other positions (LPs).

Hooks allow for dynamic adjustments and expansion of the range of smart contract usage. This concept was introduced on June 13, 2023, at the same time as the announcement of the fourth version of the Uniswap protocol. According to the developers, this functionality provides potentially lower fees and better asset management for end users.

According to the developers, Uniswap v4 is compatible with the Dencun upgrade, specifically EIP-1153, which provides transitory storage. This functionality allows developers to create optimizations for smart contracts, effectively reducing fees (for swap or instant swap transactions) using a method, “flash accounting.”

Uniswap claims that the codebase for v4 will be thoroughly audited to make it “the most thoroughly audited code ever deployed on Ethereum.”

Internal audits will be followed by a comprehensive third-party audit in collaboration with various Web 3.0 auditing companies. A community audit contest is also planned to test the code before launch.

At the moment, the Uniswap v4 codebase is frozen, with security improvements underway and developers preparing for the testing phase.