Uniswap announced their latest version 4 update to the popular DeFi protocol responsible for over $1.5 trillion in total trading volume. The new update will create Hooks, a type of smart contract that attaches itself directly to liquidity pools, allowing them to onboard new data from oracle networks. These hooks will help reduce many of the fees associated with the platform that was incurred from their v3 update in 2021. 

Hooks will also allow developers and pool deployers to create customizable liquidity pools. Acting as plugins, these hooks will provide new options including on-chain limit orders, Dynamic fees, and time-weighted average market makers that can provide more accurate pricing. 

The team at Uniswap is also open-sourcing the code for v4, allowing outside developers to make contributions to the upgraded network. They state that they “believe that the Uniswap community — the people and teams that support, use, and build on the Protocol — should govern v4 of the Protocol, just as they govern prior versions.”