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Uniswap V4 is expected to be launched in Q3. What changes will Hook bring?

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Uniswap V4 is expected to be launched in Q3. What changes will Hook bring?

With the Ethereum Cancun upgrade (Dencun) expected to arrive in March, Uniswap has also announced that V4 will be officially launched in Q3 2024. According to the Uniswap Foundation, Uniswap V4 will be the most rigorously tested code in Ethereum's history, and it will be rolled out through three phases: finalizing the code, auditing and testing on the testnet, and the official launch on the mainnet.

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With the Ethereum Cancun upgrade Dencun expected to arrive in March, Uniswap has taken the opportunity to announce that V4 will officially launch in Q3 of 2024. According to the Uniswap Foundation, Uniswap V4 will be the most rigorously tested code in Ethereum's history, and it will be rolled out through three stages: code finalization, audit and testnet, and formal release on the mainnet.

The anticipated Hook feature of Uniswap V4 has already seen numerous functionalities built by the community at Uniswap Hooks, which can be seen as plug-in extensions for Uniswap:

Hooks are plug-ins used for custom pools, swaps, fees, and LP interactions, allowing developers to innovate on top of Uniswap's liquidity and security foundation by creating custom AMM pools integrated with v4's smart contracts. What is Uniswap v4?

Some of the product features of v4 were revealed by Uniswap last year:

  • Time-Weighted Average Market Maker (TWAMM)
  • Dynamic fees based on volatility or other metrics
  • On-chain limit orders
  • Liquidity deposited into lending protocols out of range
  • Custom on-chain Oracles, such as geomean oracles
  • Automatic reinvestment of LP fees into LP positions
  • Built-in MEV extractable value for miners distributed to LPs

Observers believe this will bring significant liquidity to Uniswap, as developers can experiment and launch their own protocols while using Uniswap for liquidity through hooks. The liquidity source from V4 could potentially make Uniswap the primary liquidity layer for all DeFi, from trading to lending.