Uniswap developers have made the protocol code public to allow for meaningful community feedback and contributions.
Uniswap founder Hayden Adams has revealed some details about the upcoming version of Uniswap, which promises significant improvements to the protocol in terms of capital efficiency, security, and scalability.
The new version of the DEX, Uniswap V4, integrates improvements to the protocol infrastructure, optimizes gas fee savings and enables new ways to customize liquidity pools, Adams noted.
Uniswap V4 code has been presented in an initial draft and will be built publicly in the coming months with community support. Additionally, Uniswap V4 code will be released under a Business Source License 1.1, to limit its use in a commercial or production environment for four years. After this, the protocol code will be converted to a GPL license in perpetuity, Uniswap Lab said.
Uniswap is currently the most widely used decentralized exchange (DEX) and Automated Market Maker (AMM) in the crypto industry.
According to data from Dune Analytics, this decentralized protocol dominates 56% of the volume traded within the decentralized finance (DeFi) ecosystem, moving more than $988 million per day and $7.540 billion per week.
What's new in Uniswap's fourth version?
The new version of Uniswap aims to transform the original focus of the project, making it the core of a large central financial infrastructure that is built in public.
Both Adams and Uniswap Lab highlighted that Uniswap's open-source nature allows the protocol to benefit from contributions and ideas from the crypto community. “We believe that it should be built in public with space for feedback and contribution“Uniswap Lab said on Twitter.
Customizable pools, hooks and singleton contract
In addition to evolving the vision of the protocol, Uniswap V4 integrates a New type of smart contract called “hooks” which allows you to customize liquidity pools, adding new functionalities to them to create pools “of all shapes and sizes.”
“Uniswap v4 brings fast and expressive AMM innovation within a powerful ecosystem”, its developers said.
On the other hand, Uniswap V4 will reduce liquidity pool creation and routing costs by 99%, by keeping them in a singleton contract. By they explained developers, this “will provide significant gas savings because swaps will no longer need to transfer tokens between pools held in different contracts,” as is the case in Uniswap V3.
Overall, Uniswap V4 seeks to optimize the user experience and increase the efficiency and security of the protocol to establish itself as a vital part of the crypto ecosystem.
Continue reading: Uniswap expands to Polygon zkEVM
