Uniswap V4

Dexs

Uniswap is one of the largest decentralized exchanges that allows anyone to trade crypto assets and provide liquidity to earn trading fees. Uniswap v4 is the latest version of the protocol, introducing customizable hooks, native ETH support, and dynamic fees. It retains the capital efficiency of v3 while enabling gas savings and greater flexibility through a new singleton architecture.

Risk Rating
Good
Protocol Code Quality
Protocol Maturity
Protocol Design
What is Uniswap V4?
What we like
Uniswap V4 introduces Hooks—customizable logic at key points in pool execution—enabling a new level of flexibility for AMMs, including native support for features like dynamic fees, onchain limit orders, and TWAMMs. Its singleton architecture significantly reduces gas costs by housing all pools in a single contract.
What we like less
The hook system is powerful but introduces complexity and potential new attack surfaces. Additionally, V4’s licensing model (BSL for four years) restricts permissionless innovation by competitors, which could hinder ecosystem-wide experimentation.
What it means for you
Uniswap V4 will power a new wave of advanced DeFi use cases and more efficient trading—but builders and liquidity providers will need to understand the risks and mechanics of hooks to participate effectively.

Ready to earn 15% yield or more with Exponential?

Invest
Information
Exploit/Hacks
None
Info
Key Metrics
  • TVL: $802.5M (Rank #36)
  • TVL Ranking by Dexs: #5
  • Blockchain: Unichain, Ethereum, Arbitrum, Base, Binance, Polygon, Optimism, Soneium, Avalanche, World Chain, Zora, Blast, Ink
  • Chain TVL
    • Unichain: $501.5M
    • Ethereum: $241.18M
    • Arbitrum: $25.85M
    • Base: $18.7M
    • Binance: $6.88M
    • Others: $8.4M
Risk Assessment
Good
Protocol Code Quality
Protocol Maturity
  • Latest protocol version launched in 2025; maturity less than six months increases technical risk as smart contracts are less battle-tested
  • Top 5% by total value locked reduces risk
  • Core contracts require on-chain voting for parameter updates
  • Timelock is at least 48hrs, which provides users with sufficient time to exit if any malicious upgrades are approved
  • Low voting power concentration reduces risk
Protocol Design
  • This protocol is susceptible to risks related to decentralized exchanges (DEXs), such as impermanent loss
Things to know about Uniswap V4

What is Uniswap V4

Uniswap V4 is the latest version of the leading decentralized exchange, re-architected to enable deep customization through a new primitive called hooks. These hooks are smart contracts that execute at defined points in the lifecycle of a liquidity pool—before and after swaps, mints, and burns—allowing developers to build new behaviors directly into pools. Combined with a new singleton design that consolidates all pools into one contract to reduce gas costs, and native support for flash accounting and ERC-1155 tokens, V4 redefines what’s possible within a DEX.

How Uniswap V4 makes money

Like previous versions, Uniswap V4 does not charge protocol fees by default, but the Uniswap governance community can vote to enable a fee switch that diverts a portion of swap fees to the DAO treasury. Individual pools can also implement their own dynamic fee models via hooks, potentially monetizing specific strategies or behaviors. The protocol benefits indirectly from increased usage and integrations, which contribute to the overall value of the UNI token and ecosystem.

How you make money on Uniswap V4

The basic mechanics for earning haven’t changed from V3: liquidity providers (LPs) supply tokens to a pool and earn fees from trades that use that liquidity. In V4, LPs can choose to participate in pools with custom behaviors—like dynamic fees or time-weighted average market makers (TWAMMs)—which may generate differentiated yield. Advanced users could also deploy their own hooks to extract value through bespoke market strategies or composable DeFi primitives.

Ready to
earn 15%+
yield?

Invest

Get more from your crypto –
earn 15% yield or more

Invest