Quick Look at Uniswap V4 Core Changes

Partner 0xTodd summarizes the core updates of Uniswap V4 as 2 (Hook, Single Large Contract) + N (other small features), and predicts the benefits that the launch of Uni V4 will bring to “Chinese” projects.

Uni V4 could be a heaven for Chinese users if it goes live: Previously, gas fees were especially high when creating new pools. With the single large pool contract in the future, the cost of creating pools will drop sharply. Previously, only transaction fees could be collected. In the future, “exit fees” can also be collected. Previously, WETH had to be used and transaction fees were high. In the future, ETH can be directly used and transaction fees will be low. Previously, MEV robots caused problems, but in the future LPs will handle MEV. Other features include: splitting large orders into smaller ones, limit orders, and transaction fee reinvestment.

The core update of Uniswap V4 this time is 2+N. There are two major functions: 1) Hooks, which are like plugins that trigger specific actions, such as creating pools or making transactions. Hooks can perform many functions, including splitting large orders (to avoid affecting prices), limit orders, built-in MEV (redirecting MEV income from robots to LPs), custom oracles, and LP transaction fee reinvestment. 2) Single large contract: Previously, each pool was an independent contract, which made creating pools expensive. Combining them into a single large contract will greatly reduce transaction fees. There are also other small features that were previously suggested by the community, such as Uniswap being able to start collecting commissions and using ETH directly instead of WETH (saving transaction fees), among other things.

Reference: https://twitter.com/0x_Todd/status/1668905184070889473

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Industry
Digital Asset Investment
Location
Real world, Metaverse and Network.
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Build Daos that bring Decentralized finance to more and more persons Who love Web3.
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