Uniswap v4: Revolutionizing DEX with Hooks, Slashing Costs

Uniswap, the leading decentralized exchange (DEX) by trading volume, has rolled out a new protocol upgrade, Uniswap v4, across multiple chains. The upgrade transforms the protocol into a developer platform, introducing hooks – contracts that allow anyone to customize how pools, swaps, fees, and liquidity provider (LP) positions interact. This introduces unlimited new features that drive deeper liquidity and more swaps.

The new upgrade is expected to significantly reduce costs. Pools on v4 are anticipated to be 99.99% cheaper to create, and swappers can expect substantial savings on multi-hop swaps. Additionally, native ETH support adds significant savings for ETH pairs. Uniswap v4 has undergone nine audits, a security competition, and a $15.5 million bug bounty, with no critical vulnerabilities found.

Uniswap v4 is currently live on Ethereum (ETH), Polygon (MATIC), Arbitrum (ARB), Optimism (OP) mainnet, Base, BNBChain, Blast, World Chain (WLD), Avalanche (AVAX), and Zora Network. Uniswap remains the top DEX by trading volume, according to data from CoinGecko.

As of writing, UNI, the 28th-ranked crypto asset by market cap, is trading at $11.85. The token has experienced a decline of more than 2% in the past 24 hours and nearly 6% in the past seven days.