Version

Uniswap

DeFi

<ul><li>UNI token dipped 1% post-launch; analysts monitor adoption of hooks and layer-2 expansion via Unichain.</li><li>Modular “hooks” allow developers to customize fees, rebalance assets, and build DeFi tools via smart contract plugins.</li></ul>Uniswap deployed Version 4 of its decentralized exchange (DEX) on Friday, introducing reduced gas fees for liquidity pool creation and modular tools for developers. The upgrade, developed through <a href="https://github.com/Uniswap/v4-core/blob/main/docs/whitepaper/whitepaper-v4.pdf" rel="noopener noreferrer nofollow">open-source</a> contributions from over 100 participants, now operates across 12 blockchain networks, including Ethereum, Arbitrum, Base, Avalanche, and BNB Chain.<blockquote class="twitter-tweet">Uniswap v4 is here<img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f984.png" alt="🦄" class="wp-smiley">Users can LP on v4 through the Uniswap web app and swapping is rolling out over the coming days on web and wallet as liquidity migrates to v4Live on Ethereum, Polygon, Arbitrum, OP Mainnet, Base, BNB Chain, Blast, World Chain, Avalanche, and Zora Network <a href="https://t.co/fXC9GHEsaL" rel="noopener noreferrer nofollow">pic.twitter.com/fXC9GHEsaL</a>— Uniswap Labs <img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f984.png" alt="🦄" class="wp-smiley"> (@Uniswap) <a href="https://twitter.com/Uniswap/status/1885329579495080248?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">January 31, 2025</a></blockquote>Version 4 cuts gas costs for launching liquidity pools by 99.99% compared to its <a href="https://www.ethnews.com/uniswap-faces-market-shifts-as-whale-investors-sell-off/" rel="noopener noreferrer nofollow">predecessor</a>. The update integrates programmable “hooks”—smart contract plugins that let developers modify pool mechanics, such as fee structures or rebalancing logic.&nbsp;Over 150 hooks have been built via grants funded by the <a href="https://www.ethnews.com/uniswap-hits-2-trillion-milestone-whats-driving-its-success/" rel="noopener noreferrer nofollow">Uniswap Foundation</a>. These plugins enable protocols to automate tasks, like adjusting fees during volatile market periods or reallocating assets to maintain liquidity ratios.Liquidity providers (LPs) can now deposit assets into V4 pools through <a href="https://v4.uniswap.org/?utm_medium=blog&amp;utm_source=blog&amp;utm_campaign=v4&amp;utm_content=uniswap-web-app&amp;_gl=1*11p0pke*_gcl_au*MTMwOTUwMzgxNi4xNzM4MzU1NjQ2" rel="noopener noreferrer nofollow">Uniswap’s interface</a>. Token swaps will phase in as liquidity migrates from older versions. Since 2020, Uniswap’s V2 and V3 have executed over $2.75 trillion in cumulative trading volume.<figure id="attachment_150479" class="wp-caption aligncenter"><img class="size-full wp-image-150479" src="https://www.ethnews.com/wp-content/uploads/2025/01/uniswap-Volume-protocol-version.png" alt="uniswap-Volume-protocol-version" width="1606" height="429"><figcaption id="caption-attachment-150479" class="wp-caption-text"> Source: DefiLlama </figcaption></figure>To mitigate risks, the team completed nine third-party audits and offered a $15.5 million reward for identifying vulnerabilities before launch.<figure id="attachment_150499" class="wp-caption aligncenter"><img class="size-full wp-image-150499" src="https://www.ethnews.com/wp-content/uploads/2025/01/uniswap-defi-volumen.png" alt="uniswap-defi-volumen" width="1637" height="408"><figcaption id="caption-attachment-150499" class="wp-caption-text"> Source: DefiLlama </figcaption></figure>The <a href="https://www.ethnews.com/uniswap-achieves-500-billion-in-layer-2-trading-volume/" rel="noopener noreferrer nofollow">Uniswap Foundation</a> framed V4 as a tool for blockchains to attract decentralized finance (DeFi) activity, for protocols to customize user experiences, and for developers to experiment with on-chain financial products. For example, a lending protocol could use hooks to automatically adjust collateral ratios, or a trading platform could implement time-weighted fee models.Data shows Uniswap dominates 58% of all DEX volume. Its multi-chain expansion and fee reductions could further widen this gap, particularly as layer-2 networks like Base and Arbitrum scale Ethereum transactions. However, technical complexity remains a barrier; smaller projects may struggle to integrate hooks without specialized developers.The post <a href="https://www.ethnews.com/uniswap-v4-goes-live-lower-fees-modular-design-and-multi-chain-support/" rel="noopener noreferrer nofollow">Uniswap V4 Goes Live: Lower Fees, Modular Design, and Multi-Chain Support</a> appeared first on <a href="https://www.ethnews.com" rel="noopener noreferrer nofollow">ETHNews</a>.

Uniswap V4 Goes Live: Lower Fees, Modular Design, and Multi-Chain Support

ETHNews

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