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The upgraded DEX introduces “hooks,” or customizable logic for trading pairs.
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Uniswap has launched its v4 decentralized exchange (DEX) on 12 blockchain networks, including Ethereum and Avalanche, the Uniswap Foundation said on Jan. 31.
The upgraded DEX introduces “hooks,” plugins that let developers create custom logic for cryptocurrency trading pairs, Uniswap said.
Uniswap v4 will also operate on layer-2 scaling networks, including Arbitrum, Base, Optimism and Polygon, among others, Uniswap said. It plans to expand Uniswap v4 to more chains in the coming weeks.
Uniswap v4’s hooks include tools for dynamically adjusting swap fees, lending unused liquidity for added yield, automatically hedging against impermanent loss and protecting against maximum extractable value (MEV) strategies, such as sandwich attacks, according to Uniswap.
The Uniswap Foundation issued grants to roughly 800 developers to create a total of 150 unique hooks, it said.
“For protocol teams, v4 enables a way to improve user experience, and to differentiate themselves. And for developers, v4 provides a platform to build powerful new DeFi applications,” the Uniswap Foundation said in a statement.
Uniswap lags Raydium in 30-day trading volume. Source: DefiLlama
Related: Uniswap launches its own layer-2, Unichain
Upgrades amid rising competition
The v4 launch is Uniswap’s latest major product rollout following the launch of its own layer-2 scaling chain, Unichain, in October.
The app chain promises to deliver faster and cheaper transactions and enhanced interoperability across blockchain networks, Uniswap said.
Uniswap Labs founder Hayden Adams teased plans to launch the v4 protocol in 2023, but delays in development pushed its launch date past its 2024 target.
The last major update for the protocol was v3, launched in May 2021, offering upgrades such as concentrated liquidity, enabling providers to allocate liquidity within a custom price range.
In 2024, Uniswap lost its status as the most popular DEX by volume to Raydium, the top DEX on Solana, which has become a hub for memecoin trading.
According to DefiLlama, Uniswap clocked a 30-day trading volume of $96 billion versus approximately $122 billion for Raydium.
Trading activity on Solana surged in January after US President Donald Trump launched his official TRUMP memecoin on the network.
Magazine: Influencers shilling memecoin scams face severe legal consequences
This article first appeared at Cointelegraph.com News
