Uniswap has released its v4 decentralized exchange (DEX) across 12 blockchain networks, including Ethereum and Avalanche, as announced by the Uniswap Foundation. This new version introduces “hooks,” which are plugins that empower developers to implement customized logic for cryptocurrency trading pairs.
Additionally, Uniswap v4 will operate on various layer-2 scaling networks such as Arbitrum, Base, Optimism, and Polygon. The Uniswap Foundation has plans to extend this new version to even more chains in the upcoming weeks. The hooks introduced in v4 offer capabilities like dynamically adjusting swap fees, lending unused liquidity to generate more yield, automatic hedging against impermanent loss, and protection against strategies like maximum extractable value (MEV) tactics, including sandwich attacks.
The Uniswap Foundation has provided grants to approximately 800 developers, resulting in the creation of around 150 unique hooks. According to the foundation, these developments aim to enhance user experience for protocol teams and provide developers with a robust platform for building innovative DeFi applications.
This launch follows Uniswap’s introduction of its own layer-2 scaling chain, Unichain, in October, which aims to offer faster and more cost-effective transactions alongside improved interoperability across blockchain networks. Although the v4 protocol was initially planned for release in 2023, development delays pushed its launch into the present timeline.
The previous significant update, Uniswap v3, made its debut in May 2021, introducing features such as concentrated liquidity that allows providers to allocate liquidity within a selected price range. In 2024, Uniswap experienced a decline in its standing as the top DEX by trading volume, with Raydium, a leading DEX on Solana, surpassing it. Raydium registered approximately $122 billion in 30-day trading volume, compared to Uniswap’s $96 billion during the same period. The surge in trading activity on Solana, particularly in January, was partly driven by the launch of the TRUMP memecoin by former US President Donald Trump on the Solana network.
