- Draft version posted on Github
- The new design will reduce the cost of creating pools by 99%
- Protocol will coexist alongside V3
Uniswap Labs introduced intermediate code for V4, a completely new version of the protocol. The statement says that the fourth version will be much more efficient. First studies have shown that it will reduce the cost of creating pools by 99%. In addition, developers themselves will be able to create minimalistic pools that are cheaper to use.
However, the main difference compared to previous versions is that the protocol creates a wider playing field for developers to create their own pools with their own rules. And such an update could lead to a lot more experimentation.
Uniswap Labs CEO Hayden Adams stated:
“With advances in technology and market needs, the Uniswap protocol continues to evolve. Therefore, we are excited to present our vision for Uniswap v4, which we believe will open up new horizons for creating liquidity and trading tokens on the blockchain.”
Sarah Reynolds, smart contract engineer at Uniswap Labs, announced that developers will be able to choose between protocols as the new version V4 will co-exist with V3, which remains unchanged on the Ethereum blockchain.
According to the new project, all pools will be under one contract. Therefore, the protocol will only need to transfer the net balance back to the user. This allows you to save on blockchain fees and opens up more opportunities.