Why Uniswap V4?
A brief primer of Uniswap V2, V3, and V4
Stated extremely briefly, Uniswap V2 introduced pairs for token swaps, adding efficiency and simplicity to liquidity pools. V3 brought concentrated liquidity, allowing LPs to define price ranges, significantly improving capital efficiency. V4 builds on this by introducing hooks, which enable modular and customizable pool logic, unlocking new possibilities for development.
V4's Hooks
Hooks in Uniswap V4 allow complex customization of the behavior of liquidity pools, such as fee structures, or other on-chain integrations. This modularity enables building without deploying entirely new smart contracts, and as such, is pivotal for QuantDAO's additional features, starting with a unique and true common sense tax structure.
Further rationale
Aside from hooks, Uniswap V4 grants several advantages to enhance user experience and development freedoms;
Consolidating all pools into a single smart contract as well as using native ETH, this reduces gas costs for transactions by sharing infrastructure like swap routing and storage.
Modularity via hooks allows seamless integration with other protocols, fostering innovation and enabling new DeFi applications.
V4's extensibility ensures it can adapt to evolving DeFi needs, essentially future-proofing.
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