Research Summary

The report discusses the upcoming Uniswap V4 upgrade, which introduces a slew of new features aimed at improving the protocol’s efficiency and customizability. The new version implements a “singleton” model, managing all pools within a single contract, significantly reducing gas costs. It also introduces the concept of a “hook”, allowing developers to customize liquidity pool behavior based on set triggers. However, the report notes that despite these improvements, there are still limitations, particularly in terms of MEV capture.

Actionable Insights

  • Uniswap V4’s singleton model: This new model reduces the gas costs of deploying a liquidity pool by 99%, making it more efficient.
  • Introduction of hooks: Hooks allow developers to customize certain behaviors in liquidity pools, increasing their granularity and expressivity.
  • Upgraded fee switch: Pool deployers can now turn on their fee switch, competing with the UNI DAO, and a withdrawal fee for LPs can also be enabled.
  • Donate() function: This function allows users and integrators to directly pay in-range liquidity providers, incentivizing certain types of liquidity.
  • Increased complexity: The new features make the protocol more complicated, and liquidity providers will likely need to become more sophisticated.

Visit the full report here


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