Uniswap announced that the early implementation of the code for its V4 and the draft whitepaper have been released on Github, in an effort to invite the community to give feedback. The DEX said, "we see Uniswap as core financial infrastructure & think it should be built in public with space for community feedback and contribution."
V4 will allow developers to create customized liquidity pools by introducing contracts called "hooks". With the help of hooks, pool creators can make tradeoffs among different factors, and add new features to pools, such as dynamically adjusting fees, time-weighted average market maker (TWAMM), customized onchain oracles, onchain limit orders, and more.
In V4, all the pools will be held in one singleton contract, which expects to reduce the cost of pool creation by 99%. With custom pools and singleton, developers can leverage the security and network effects of Uniswap, without needing to build their own AMM from scratch.
The early code will be released under a Business Source License 1.1, which limits the use of the V4 source code in a commercial or production setting for up to four years, at which point it will convert to a GPL license into perpetuity. The protocol fee mechanism of V4 will be modeled after V3. Governance will be able to vote to add a Protocol fee to any pool, up to a capped amount.
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