According to a June 13 blog post by Uniswap founder Hayden Adams, Uniswap Labs has released a code sketch for the V4 version of the platform.
The new code outline released includes hooks and plugins that allow developers to create custom liquidity pools. According to the shared post, V4’s hook feature will allow future developers to achieve many innovations such as in-chain limit orders, automatic deposits to lending protocols, automatic liquidity provider fees.
The New Version Will Provide Many Benefits to Users
The release of the source code was the first step towards launching the new version of Uniswap.
The team now plans to interview members of the Uniswap community and iterate over this core code over time. Once there is sufficient consensus on the final version, V4 will become a formal proposal and put before Uniswap’s governing body, UniswapDAO. According to Hayden Adams’ blog post, the purpose of Uniswap V4 is to create a way for pool distributors to introduce code that performs a specified action at key points throughout the pool’s lifecycle.
With the new release, distributors will be able to create time-weighted average market makers (TWAMMs) that allow users to sell large amounts of crypto in small batches over time.
This can help prevent traders from being upfront and exposed to negative price movements by EVM bots. On-chain limit orders will also be possible, as pools can include logic that allows them to execute the order only when a token reaches a certain price. Some other examples of hooks include codes that can deposit wages back into an LP pool or lend inventory when a particular pool is not in use.
Speaking to Cointelegraph, Uniswap Labs Engineer Sara Reynolds said the new version will allow it to evolve faster than ever thanks to the inherent customizability provided by automated market maker (AMM) exchanges like Uniswap.
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