Expected implementation of Uniswap V4
Regarding Uniswap, the largest decentralized exchange (DEX), progress was confirmed regarding the release timing of V4, the next-generation model. Uniswap V4 is planned to be launched while waiting for the completion of the implementation of Ethereum (ETH)’s large-scale upgrade “Cancun” scheduled for the end of September 2011.
Erin Cohen, Governance Lead for the Uniswap Foundation, announced today that the Uniswap V4 security audit process will begin after the Cancun upgrade is complete. The audit process is yet to be finalized but is expected to take between one and four months.
The new version 4 will introduce a trading pair customization feature called Liquidity Pool (LP). It is expected to significantly improve the capital and gas efficiency of the protocol compared to the current version 3.
One notable new feature is “Hooks”. This will be a plugin for creating your own automated market maker (AMM) pool. Specifically, it is possible to dynamically change commissions according to market conditions, and to distribute buy orders at regular intervals using limit orders and dollar cost averaging (DCA).
connection:Uniswap v4 development plan announced, expected to significantly improve capital efficiency and gas efficiency
Effects of Cancun upgrade
Uniswap v4 also introduces a new mechanism called “flash accounting” that significantly reduces gas costs for transactions across multiple pools. This leverages Ethereum’s proposed protocol improvement EIP-1153 “Transient Storage” which will be integrated in the Cancun upgrade. Therefore, the release of Uniswap v4 will be greatly affected by the success or failure of the Cancun upgrade.
According to Cohen, the V4 implementation schedule is just a guideline. It should be noted that Cancun’s hard fork may be postponed, the audit process may be extended, and other factors may change it.
Meanwhile, Ethereum blockchain developers at a meeting on June 8 compiled a list of improvement proposals (EIPs) for the upcoming upgrade, Cancun.
The most significant change is EIP-4844 “Proto-Danksharding”, which reduces the transaction cost of transferring data from Layer 2 (L2) to Layer 1 (L1). This will enable up to 100x reduction in transaction fees for Layer 2 scaling solutions such as Optimism (OP) and Arbitrum (ARB).
EIP-4844 is an important step for Ethereum to implement sharding in the future.
connection:Ethereum’s next upgrade “Dencun”, what is the importance and merit?