Uniswap v4 Breaks the Mold: Empowering Users with Hooks for Endless Dex Customization
The biggest decentralized exchange, Uniswap, has shared some exciting news about their upcoming update.
They believe that Uniswap is not just a financial tool but a platform for the community to contribute and give feedback. So, they’re bringing in the concept of “hooks” to jazz things up!
Hooks are like plugins that allow developers to create their own customized pools, swaps, fees, and LP positions. It’s like giving Uniswap a makeover to match your style. You can do all sorts of cool stuff, like using time-weighted average market makers, dynamic fees based on volatility, and even on-chain limit orders. Feeling adventurous? How about depositing liquidity outside the normal range and using custom on-chain oracles? The possibilities are endless!
Uniswap is also considering features like auto-compounding LP fees and sharing internalized MEV (Maximum Extractable Value) profits with LPs. It’s like turning up the party volume and sharing the rewards with everyone!
Uniswap believes that with hooks, developers can go wild and create pools of all colors, shapes, and sizes. The sky’s the limit! Each pool can have its own hook smart contract, but they can also be limited to specific permissions set during pool creation. So, you can have your own unique pool rules and restrictions.
Now, let’s talk about the code release. Uniswap will be using a Business Source License 1.1, which means there are some restrictions on using the v4 source code for commercial purposes for up to four years. But don’t worry, after that period, the code will transition to a GPL license, which means it can be used indefinitely. Uniswap Governance and Uniswap Labs have the power to grant exemptions, just like they did with v3.
Clever Robot News Desk 14th June 2023