Uniswap releases Uniswap v4 code draft

ChainCatcher news, Uniswap has announced the release of the Uniswap v4 code draft, allowing for public building of v4. The vision for Uniswap v4 is to enable anyone to make these trade-off decisions by introducing "hooks." Hooks are contracts that run at various points in the pool operation lifecycle, allowing the pool to make the same trade-offs as v3 or to add entirely new functionalities. For example, v4 will allow the pool itself to support dynamic fees, add on-chain limit orders, or act as a Time-Weighted Average Market Maker (TWAMM) to spread large orders over time. Additionally, v4 pools will exist within a single contract, significantly reducing the cost of creating mining pools by 99%.

The Uniswap v4 code will be released under the Business Source License 1.1, which restricts the use of the v4 source code in commercial or production environments for four years, after which it will permanently convert to the GPL license. The protocol fee mechanism will also mirror that of v3. The governance layer will be able to vote to add protocol fees to any liquidity pool, but not exceeding a cap amount. (source link)