Uniswap version 4 launched on 12 major blockchains marks a significant platform expansion and strengthens its position in the competitive DeFi market.
A New Stage in Uniswap's Development
On January 31, the Uniswap Foundation announced the deployment of the fourth version of its decentralized exchange protocol (DEX) on 12 major blockchains. This includes Ethereum as well as scaling solutions like Arbitrum, Base, Optimism, and Polygon, along with Avalanche, significantly expanding the Uniswap ecosystem.
Key Innovations of Version 4
The flagship innovation of this update is the introduction of 'hooks'—plugins that allow developers to implement custom logic for trading pairs. Around 800 developers have already created 150 unique hooks, and the capabilities offered include dynamic swap fee adjustments, yield optimization through lending inactive liquidity, and enhanced protection against sandwich attacks and other MEV (Maximum Extractable Value) strategies.
Competition in the DeFi Market
The launch of version 4 comes at a strategically important time for Uniswap. In early 2024, the platform was surpassed by Raydium, the leading DEX on Solana, in transaction volume. Raydium reached 122 billion dollars in volume over 30 days, compared to 96 billion for Uniswap. This new version, delayed from its initial 2023 schedule, marks the first major evolution since v3 in May 2021. In the coming weeks, the Foundation plans to deploy v4 on other blockchain networks, further strengthening its position in the DeFi ecosystem amid growing competition.
The launch of Uniswap v4 marks an important step in competing within the DeFi market. The new features and expansion onto additional blockchains strengthen Uniswap's position in the rapidly evolving financial technology sector.
