What Is Uniswap v4? A Technical Breakdown
Uniswap v4 redefines AMM design with hooks, flash accounting, singleton architecture, dynamic fees, and native ETH support—boosting efficiency and developer flexibility.
Uniswap v4: The Next Generation AMM
Key Innovations
Hooks: Developers can inject custom logic before/after pool operations like swaps, liquidity changes, or donations—enabling limit orders, dynamic fees, automated liquidity, custom oracles, and more.
Singleton Design: All pools and operations are managed via a single contract (PoolManager.sol), drastically cutting gas by avoiding per-pool deployments and optimizing multi-hop swaps.
Flash Accounting: Leveraging EIP-1153 transient storage, this mechanism nets all token deltas within a transaction—only the final state is settled—streamlining atomic operations.
Native ETH Support: ETH can now be used directly in pools without WETH — saving gas and simplifying UX.
Dynamic Fees: Flexible fee updates (per-swap, per-block, or on custom schedules) allow better fee optimization and strategic revenue mechanics.
Uniswap v3 vs v4 Comparison
| Feature | Uniswap v3 | Uniswap v4 |
|---|---|---|
| Architecture | Multiple pool contracts | Singleton contract managing all pools |
| ETH Support | WETH required | Native ETH support |
| Custom Logic | Not supported | Hooks allow custom pool behavior |
| Fee Structure | Static tiers (0.05%, 0.3%, 1%) | Dynamic fees configurable via hooks |
| Gas Efficiency | Higher (per-pool deployments) | Lower (singleton + flash accounting) |
Architecture
v3: Multiple pool contracts
v4: Singleton contract managing all pools
ETH Support
v3: WETH required
v4: Native ETH support
Custom Logic
v3: Not supported
v4: Hooks allow custom pool behavior
Fee Structure
v3: Static tiers (0.05%, 0.3%, 1%)
v4: Dynamic fees configurable via hooks
Gas Efficiency
v3: Higher (per-pool deployments)
v4: Lower (singleton + flash accounting)
Security & Complexity Considerations
While hooks enable innovation, they also increase the attack surface—custom code must be audited. Transient accounting and complex pool logic also demand rigorous testing and formal validation.
Summing Up
Uniswap v4 solidifies Uniswap’s place not just as a DEX, but a programmable liquidity platform—blending efficiency, flexibility, and composability. It sets the stage for next-gen DeFi infrastructure.
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