Decentralized cryptocurrency exchange UniSwap (UNI) has announced its v4 update.
The biggest change that the update will bring was "hooks". Hooks were introduced as plugins that allow the creation of highly customizable repositories.
Limit Order Feature Coming with UniSwap v4
Hooks can be used to add new functionality to UniSwap:
- Dynamic fees
- Limit orders
- TWAP Orders
Another big innovation added with V4 will be Singelton. Singleton is a single contract that includes all repositories deployed in V4. Transactions will be routed through Singleton, which should significantly reduce gas costs for swaps and pool distribution.
Like V3, V4 will be managed by the Uniswap DAO. It will also include a protocol fee switch that can be activated per pool by UNI holders.
V4 will have big implications for DeFi as a whole. Increased functionality, gas and capital efficiency can help UNI remain the leading DEX. This, along with regulatory concerns and the post-FTX self-custody move, could make V4 competitive with CEXs.
Developers will be able to create Hooks and improve Uniswap's liquidity more easily than V3.
However, UniSwap, which has learned from v3 that has recently been forked, has increased the license period of v4 to 4 years.
No information was given about when UniSwap v4 will be released.
*Not investment advice.
