Uniswap V3 is the largest exchange, creating over 1.5 trillion in trading volume. Uniswap has always been a leader in this field.
Innovative Features
Triggers (hooks): Allows certain actions to be triggered at specific times. The "donate" feature is new, where traders can choose one asset as a fee instead of two.
Singleton Mode: In V3, each pool is a contract and each liquidity is an NFT, while in V4, they are merged into one contract.
Flash Accounting: In a single swap, even if it crosses multiple pools, only the quantity of the swap is calculated, simplifying the process. In the example on the left, when ETH is swapped for DAI, it requires calling 4 contracts, but the new version only requires one call, significantly reducing gas fees.
Impact
The launch of Uniswap V4 will impact all exchanges, DEXs, and CEXs.
Compared to its V2 and V3 versions, V4 is less user-friendly for beginners. The combination of strategies is more diverse and complex, making it more difficult to analyze LP profitability and trends, but more convenient for experienced traders to profit.
Recommendations
Strategies from V2 and V3 can still be used, so it is advisable to familiarize oneself with them in advance and make a profit when V4 is launched.
Common strategy updates:
References:
Uniswap V4 Blog: https://blog.uniswap.org/uniswap-v4
Whitepaper: https://github.com/Uniswap/v4-core/blob/main/whitepaper-v4-draft.pdf
The Block Beats: https://www.theblockbeats.info/news/42643
TWAMM: Time-Weighted Average Market Maker Mechanism: https://www.paradigm.xyz/2021/07/twamm