Uniswap v4 expected to go live after Ethereum’s Cancun upgrade and security audit

The Uniswap Foundation has shared details on the timeline for the upcoming launch of Uniswap’s version 4 (v4) protocol.

Erin Koen, the governance lead at the Uniswap Foundation, stated the the launch is projected to take place later this year. This timeframe hinges on the successful implementation of Ethereum’s upcoming Cancun upgrade (targeted by the end of September). It will also need the finalization of a comprehensive audit process that may take up to four months after Cancun.

To clarify, the audit process won’t start until after Cancun, Koen told The Block.

Reinventing Uniswap: introduction of “hooks” in version 4

Uniswap, the largest decentralized exchange protocol, is preparing for its next significant evolution with the release of version 4 (v4). Its draft code released on June 13 indicates a shift towards a more modular exchange structure, predominantly through the incorporation of “hooks.” These hooks are smart contracts that will facilitate additional customization in Uniswap's liquidity pools using methods such as dynamic fees, on-chain limit orders, and customized on-chain oracles.

The v4 release will also introduce a “flash accounting” system that will result in lower fees for liquidity providers. This system differs from the v3 model, which transferred assets into and out of pools after each swap. Instead, the new method transfers only net balances.

Uniswap’s team anticipates that flash accounting will lead to considerable gas savings in v4. The mechanism relies on “transient storage,” which will be activated by the proposed EIP-1153 change in Ethereum’s protocol, due to be integrated in the upcoming Cancun upgrade.

In this context, Koen said that the next phase in the v4 development process is the ‘protocol code frozen’ stage. This stage includes the incorporation of EIP-1153 into the v4 code. Hence the launch is contingent upon the successful integration of EIP-1153 into the Cancun upgrade, which Koen stated could occur as early as September. The security audit is estimated to take between one and four months following the Cancun upgrade.