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The latest statement from the Uniswap Foundation has claimed that the launch of version 4 of the protocol depends on Ethereum’s upcoming Cancun upgrade.
Cancun, Audit, Then V4
The Uniswap Foundation recently put forth an announcement elaborating its plans for the much-awaited Uniswap v4 protocol. Although the foundation’s Governance Lead, Erin Koen, has disclosed that the launch is scheduled for later this year, the fact is that a lot depends on the successful deployment of Ethereum’s upcoming Cancun upgrade, which is scheduled to go live around the end of September.
Uniswap v4 will also require thorough auditing before it goes live, a process that can only start after Cancun and can take as long as one to four months.
V4 To Reinvent Uniswap
The v4 launch will bring forth a major reinvention for the Uniswap platform, which is already the largest decentralized exchange protocol. One of the most noteworthy changes that will be incorporated will be “hooks” or smart contracts that can enable additional customization of the protocol’s liquidity pools to create a more modular exchange structure through features like dynamic fees, on-chain limit orders, and tailored on-chain oracles.
Another revolutionary feature that is to be incorporated with the v4 launch is a “flash accounting” system, which will reduce fees for liquidity providers and is being predicted to contribute significantly to gas savings. This mechanism leverages "transient storage," which will be activated by the proposed EIP-1153 change in Ethereum's protocol, set to be integrated during Cancun.
Additionally, in contrast to the v3 model, which involved transferring assets into and out of pools after each swap, the new method will only transfer net balances.
Roadmap For V4
For now, the next “protocol code frozen” stage will focus on incorporating the EIP-1153 into the protocol code for the next version. Ideally, the EIP-1153 will be successfully integrated into Etheruem’s Cancun upgrade, which will allow the Uniswap Foundation to roll out the v4 protocol.
Koen has claimed that the foundation will not be rushing the process and instead take the necessary time to do due diligence and ensure the integrity of the Uniswap ecosystem and user safety. Therefore v4 launch will only go ahead after the necessary parameters are satisfied.
The Ethereum community is eagerly anticipating the upcoming Cancun upgrade, fueling even more excitement for the potential advancements in the next version of Uniswap. This pivotal moment holds great significance for the DeFi space, as these developments have the potential to reshape the industry and reinvent decentralized exchanges.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.