Uniswap Foundation's recent announcement indicates that the anticipated launch of the Uniswap v4 protocol hinges on Ethereum's upcoming Cancun upgrade. Erin Koen, the foundation’s Governance Lead, has disclosed that the launch is slated for later this year. However, this depends heavily on the successful deployment of the Cancun upgrade, expected to go live towards the end of September.
The launch of Uniswap v4, which promises a major revamp of the Uniswap platform, also requires thorough auditing. This auditing process can only commence after the Cancun upgrade and might take anywhere between one to four months.
The v4 upgrade will introduce major changes to the already leading decentralized exchange protocol. Noteworthy among these is the introduction of “hooks,” smart contracts that will allow greater customization of the protocol’s liquidity pools. These hooks will enable dynamic fees, on-chain limit orders, and customized on-chain oracles. The upgrade will also feature a "flash accounting" system designed to reduce fees for liquidity providers and contribute significantly to gas savings.
Ethereum's Cancun upgrade will incorporate the proposed EIP-1153 change, which is crucial for activating Uniswap's "transient storage" as part of the flash accounting system. This change, along with the shift to transferring net balances instead of assets after each swap, promises a more streamlined and efficient protocol.
The next stage for the v4 protocol is integrating the EIP-1153 into the code. This will only occur after the successful integration of the EIP-1153 into Ethereum’s Cancun upgrade. The Uniswap Foundation has emphasized its commitment to due diligence and the integrity of the Uniswap ecosystem, thereby ensuring the v4 launch will proceed only once all parameters are satisfied.
With the Ethereum community eagerly awaiting the Cancun upgrade, the anticipation for the advancements in Uniswap v4 also heightens. This period marks a significant juncture for the DeFi industry, as these developments could potentially reshape and reinvent decentralized exchanges.
