Uniswap Announces V4 Protocol Set for Q3 2024 Launch

The Uniswap Foundation has announced the tentative launch of Uniswap's version 4 (v4) protocol in the third quarter of 2024. 

Last June, the foundation unveiled the draft code for Uniswap v4, bringing hooks into the protocol for the first time.

Hooks represent a significant departure from the rigidity of traditional smart contracts. They reportedly empower developers to inject custom logic at specific points, fostering dynamic adjustments and enabling diverse use cases. 

For users, this innovation holds the promise of potentially lower fees, improved asset management strategies, and access to novel features such as instant swaps.

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EIP-1153 and Transient Storage

The impending Ethereum Dencun upgrade in March 2024 sets the stage for several Ethereum Improvement Proposals (EIPs), with EIP-1153 being particularly relevant to Uniswap v4. This proposal introduces transient storage, allowing developers to optimize smart contracts for more complex functionality.

According to Blockworks Research Analyst 0xpibblez, EIP-1153 is pivotal for Uniswap v4's efficiency. The protocol will store all assets in a singleton contract, utilizing transient storage for "flash accounting," significantly reducing gas fees associated with swaps. Moreover, EIP-1153 opens doors for Uni v4 hooks.

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Rigorous Security

As part of its efforts to make the launch of Uniswap v4 seamless, the Uniswap Foundation has announced that its code will undergo the most rigorous auditing ever conducted on Ethereum. Currently, in the "Code Freeze" phase, the team focuses on core code completion, testing, gas optimization, security enhancements, and finalizing periphery elements.

Following these steps, Uniswap v4 will undergo scrutiny from audit firms and a community audit contest. The foundation envisions this comprehensive approach to ensure the protocol's robustness before deployment to the testnet.

The third and final phase aims to release Uniswap v4 on the Ethereum mainnet in Q3 2024, contingent on the status of the impending Dencun upgrade.

As the most widely used automated market maker, Uniswap has undergone iterative transformations since its launch in 2018. Uniswap V3, introduced in May 2021, introduced the concept of "concentrated liquidity," empowering liquidity providers to choose specific price ranges for enhanced fee earnings