1. BITBILIHome
  2. Article

Uniswap reveals V4 code a secret weapon to transform decentralized trading

• 43 views

TL;DR Breakdown

  • Uniswap Labs recently announced the release of a draft code for Uniswap V4, the latest version of the popular decentralized cryptocurrency exchange.
  • The introduction of “hooks” in Uniswap V4 allows developers to introduce innovative features such as on-chain limit orders, automatic deposits to lending protocols, and auto-compounded liquidity provider (LP) fees.
  • The main objective of the update is to provide a mechanism for pool deployers to incorporate custom code that performs specific actions at different stages of a liquidity pool’s lifecycle.

Uniswap Labs recently announced the release of a draft code for Uniswap V4, the latest version of the popular decentralized cryptocurrency exchange. In a blog post by Uniswap’s Founder, Hayden Adams, it was revealed that the new code incorporates “hooks” or plugins that enable developers to create custom liquidity pools. Uniswap, known for its high trading volume, currently operates on its V3 version, which was deployed on May 4, 2021.

The introduction of “hooks” in Uniswap V4 allows developers to introduce innovative features such as on-chain limit orders, automatic deposits to lending protocols, and auto-compounded liquidity provider (LP) fees. The purpose of releasing the source code as a draft is to engage with the Uniswap community, gather feedback, and iterate on the code over time. Once a consensus is reached and a final version is agreed upon, it will be proposed to Uniswap’s governing body, UniswapDAO.

The main objective of Uniswap V4 is to provide a mechanism for pool deployers to incorporate custom code that performs specific actions at different stages of a liquidity pool’s lifecycle. For instance, developers can create time-weighted average market makers (TWAMMs), which allow users to sell large amounts of crypto in smaller batches over time. This helps traders avoid being frontrun by Ethereum Virtual Machine (EVM) bots or experiencing adverse price movements. Additionally, on-chain limit orders will be possible, allowing pools to fulfill an order only when a token reaches a specified price.

The introduction of hooks opens up numerous possibilities for customization. For example, fees collected from transactions can be automatically redeposited back into the liquidity pool, or the inventory can be lent out when a specific pool is not in use. These hooks provide flexibility and expand the functionality of Uniswap, enabling developers to build on top of its security and liquidity.

Uniswap update means “endless possibilities”

The firm’s Engineer Sara Reynolds emphasized that Uniswap V4’s customizability will accelerate the development of automated market maker (AMM) exchanges. The ability to introduce customized logic through hooks will facilitate rapid AMM innovation. Reynolds stated that this feature represents a significant step forward and expressed excitement about the possibilities it unlocks.

Bridget Frey, Head of Communications at the Company, echoed this sentiment, highlighting that Uniswap V4 will enable projects to leverage the security and liquidity of the platform while implementing their own hook contracts. This approach aims to foster faster and easier innovation for a wide range of projects, ultimately benefiting the entire ecosystem.

The recent surge in decentralized exchanges (DEXs) can be attributed to various factors, including increased user adoption and regulatory actions against centralized competitors. Following regulatory scrutiny and legal action against centralized exchanges such as Binance and Coinbase, DEXs experienced a significant influx of new users. In fact, the top three DEXs saw a staggering 444% surge in trading volume. Despite attempts by regulatory bodies like the United States Securities and Exchange Commission (SEC) to redefine the term “exchange” to include decentralized platforms, crypto venture capital firm Paradigm argues that DEXs do not meet the definition outlined in securities laws.

The platform’s release of the draft code marks an important milestone in the evolution of decentralized exchanges. The introduction of hooks provides developers with the ability to create customized liquidity pools with innovative features, such as on-chain limit orders and automated deposit functionality. This development is expected to drive rapid innovation within the AMM space and further solidify Uniswap’s position as a leading decentralized exchange.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

文章来源于互联网:Uniswap reveals V4 code a secret weapon to transform decentralized trading

Disclaimers:

1. You are solely responsible for your investment decisions and this info is not liable for any losses you may incur.

2. The copyright of this article belongs to the writer, it represents the writer's opinions only, not represents the site's ones. Not financial advice.

Previous 2023年6月16日 04:42
Next 2023年6月16日 06:18

Related articles

  • Why is France in the middle of China and EU’s relationship?

    TL;DR Breakdown China wants France to stabilize the EU-China relationship, showcasing France’s critical role in this diplomatic dance. Economic cooperation between China and France is deepening across sectors like finance, science, and tech innovation, highlighting their economic interdependence. France’s role in EU-China relations isn’t just about economics, as it also navigates political realities and ethical dilemmas. Description When a person thinks of the delicate dance between China, the world’s second-largest economy, and the European Union, the spotlight doesn’t always fall on France. Yet, a recent meeting between Chinese Vice-Premier He Lifeng and French Economy Minister Bruno Le Maire in Beijing illustrates why the spotlight should be there. France is not just an … Read more When a person thinks of the delicate dance between China, the world’s second-largest economy, and the European Union, the spotlight doesn’t always fall on France. Yet, a recent meeting between Chinese Vice-Premier He Lifeng and French Economy Minister Bruno Le Maire in Beijing illustrates why the spotlight should be there. France is not just an essential player, but a potential dealmaker and deal breaker in…

    Article 2023年7月30日

  • Taurus integrates with Polygon to expand tokenization capabilities for financial institutions

    TL;DR Breakdown Taurus integrates with Polygon, enabling European banks to tokenize assets and issue digital securities. The partnership combines Taurus’ tokenization capabilities with Polygon’s efficient and cost-effective blockchain infrastructure. Tokenized securities are gaining traction among financial institutions, offering increased liquidity and programmable behavior for assets. Digital asset infrastructure provider Taurus has announced its integration with Polygon, a scaling network for Ethereum, to enhance its tokenization efforts in Europe. The move follows Taurus’ successful $65 million funding round. It will enable its clients, including major financial institutions such as Arab Bank Switzerland, Credit Suisse, and Deutsche Bank, to issue digital securities seamlessly. Taurus sees debt, funds, and structured products as popular assets for tokenization, with the choice of Polygon as a natural fit due to its association with the Ethereum network. Enabling banks and brands to issue and custody any tokenized asset using @0xpolygon@taurus_hq, the European digital asset infrastructure leader is now fully integrated and automated #onPolygon 😎 More: https://t.co/U2tT0azjkG pic.twitter.com/urFCzXN8eg — Polygon (Labs) (@0xPolygonLabs) June 2, 2023 Tokenization involves converting tangible or intangible assets into digital tokens, allowing for increased…

    Article 2023年6月7日

  • Vitalik Buterin sells MakerDAO stake following CEO Rune Christensen’s Solana proposal

    TL;DR Breakdown MakerDAO CEO Rune Christensen proposes a long-term vision for the project, suggesting a transition to a new blockchain potentially forked from Solana. Following the announcement, Ethereum co-founder Vitalik Buterin sold his remaining stake of 500 MakerDAO tokens for about $580,000 in ETH. Description In a recent blog post, Rune Christensen, the co-founder and CEO of MakerDAO, outlined the project’s long-term vision, which includes a significant shift in its underlying technology. Christensen proposed that MakerDAO could be re-implemented on a new blockchain called NewChain. This new blockchain could be forked from the Solana codebase, a move that would mark … Read more In a recent blog post, Rune Christensen, the co-founder and CEO of MakerDAO, outlined the project’s long-term vision, which includes a significant shift in its underlying technology. Christensen proposed that MakerDAO could be re-implemented on a new blockchain called NewChain. This new blockchain could be forked from the Solana codebase, a move that would mark a significant departure from MakerDAO’s current Ethereum-based architecture. Christensen cited three reasons for considering Solana as a viable option for NewChain. First,…

    Article 2023年9月3日

  • Kyrgyzstan embraces crypto mining amidst energy challenges

    TL;DR Breakdown Kyrgyzstan’s President has approved a cryptocurrency mining farm, aiming to use excess power and boost income. Despite energy sector challenges, the President ensures the mining farm won’t strain power supplies. As Kyrgyzstan explores cryptocurrency’s economic potential, it plans to impose high tariffs on crypto mining. Description In a recent move towards energy and economic optimization, Kyrgyzstan’s President Sadyr Japarov has greenlit the establishment of a cryptocurrency mining farm in the Central Asian nation. Japarov addressed claims from RFE/RL media in a candid interview with the “Kabar” agency, debunking assertions regarding the controversial prioritization of power to private mining companies over Kyrgyz … Read more In a recent move towards energy and economic optimization, Kyrgyzstan’s President Sadyr Japarov has greenlit the establishment of a cryptocurrency mining farm in the Central Asian nation. Japarov addressed claims from RFE/RL media in a candid interview with the “Kabar” agency, debunking assertions regarding the controversial prioritization of power to private mining companies over Kyrgyz citizens. The President affirmed the state’s inability to provide electricity throughout winter but assured the populace that missing electricity…

    Article 2023年7月29日

  • Web3 marketers’ costly leak – The 23% Ad budget drain and how to plug it

    TL;DR Breakdown The open web, once heralded as the holy grail of digital advertising, is now proving to be a swamp for Web3 advertisers. According to a recent study, nearly $20 billion of the $88 billion in open programmatic ad spending (or 23% of it) is squandered on ineffective ad placements on questionable websites. According to the findings, advertisers should require more specific data from ad tech providers and reconsider their approaches to maximize their budgets. Description Web3 markets have met tradfi challenges. The Association of National Advertisers (ANA) released a report on the state of the Web3 digital advertising industry at this year’s Cannes Lions International Festival of Creativity, and it found that wasted advertising spending persisted across the open web.  The analysis concluded that the digital advertising ecosystem still needs … Read more Web3 markets have met tradfi challenges. The Association of National Advertisers (ANA) released a report on the state of the Web3 digital advertising industry at this year’s Cannes Lions International Festival of Creativity, and it found that wasted advertising spending persisted across the open web. …

    Article 2023年6月24日
TOP