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Uniswap V4 – A New Era of DeFi Customization and Innovation
Jake Kennis
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Key Takeaways
9 min read
  • Uniswap v4 opens up new yield opportunities like Bunni’s ~13% APR USDC-USDT vault while shifting MEV profits back to LPs and enabling advanced strategies like delta-neutral hedging via hooks.
  • With $144M in funding incentives and hooks as a core focus to scale up to 30% of total volumes by EOY, v4 offers both a powerful framework and fresh incentives to launch new DeFi primitives directly within the protocol—no need to fork or build liquidity from scratch.
  • v4 expands the capabilities of the underlying DEX, unlocking more flexible DEX experiences—like fair token launches, MEV-protected trades, and auto-rebalancing LPs—giving users access to powerful financial products with lower fees and better UX.

Introduction

Uniswap v4 is the most significant upgrade to the protocol yet, turning the dominant DeFi exchange into a flexible platform for building new financial applications. The core innovation are hooks—customizable smart contracts that let developers plug in their own logic at key points in a pool’s lifecycle. This makes it easy to build bespoke trading features, dynamic liquidity strategies, or entirely new primitives directly within Uniswap itself. Alongside hooks, v4 introduces major technical improvements: dynamic fees, a more gas-efficient "singleton" architecture, and native ETH support.

The Uniswap Foundation is betting big on this future, with [over $144M in approved...