🦄 The Dex King: UniSwap V4

GM Legends,

Bitcoin gave Blackrock a thumbs up as it pumped back up towards $27,000 as Ethereum chops in this awkward $1,700 range.

J Powell is set to speak Wednesday and Thursday covering the “Semi-Annual Monetary Policy Report” whilst we, as degens, patiently wait for the pro traders holidaying in the Hamptons to return, bringing their liquidity back with them.

In the meantime, let’s take a look at how UniSwap V4 might just be your unfair advantage over the rest of the market.

PS… don’t be late, anon… just 7 days left to complete Quest for Larp badge 1.

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The big story.
🦄 The Dex King: UniSwap V4

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🔥 The big story.
To make you think.

🦄 Welcome back King

The big daddy of dexes is en route to V4 (no… not CZ’s 4)!

Last week UniSwap announced that V4 is coming by sharing its vision with the world.

And after letting the dust settle, and reading countless threadoooors… here’s our take on it and what it means for DeFi.

History class.

To sum UniSwap up, it's the King of the dexes as it consistently sees the highest daily trading volumes.

It’s also the first dex most of us reading this probably used for our first rug pull when entering the world of DeFi and on-chain trading.

So let’s recap the story so far:

• Uni V1 was just the beginning, enabling ETH-ERC20 swaps

• Uni V2 fixed some V1 bugs and activated ERC20-ERC20 swaps

• Uni V3 gave LPs control, introduced concentrated liquidity and range orders

• Uni V4 is creating composability and gas efficiency (TY!)

What’s new in V4?

Hooks, Singleton and a challenger to cexes & dexes.

Hooks are the flagship feature of V4. They're expressive customisations (code) you can choose from to add to your pool.

Want dynamic swap fees? There's a hook for that.

How about limit orders? Yup, there's a hook for that too.

Fancy something more complex? Yup, there's a hook that’ll let you TWAP (Time-weighted average price) it.

Singleton, it’s a single contract that contains all the Uni V4 pools whereas V3 had a single contract for a single pool. It’s set to improve gas efficiency by up to 99%, reduce the need for multiple routes on a swap and utilise a “flash accounting system” (no need to transfer assets in and out of pools after each swap).

However, if all pools are held in 1 contract… what happens if Singleton is breached? Will on-chain DeFi come crumbing down in 1 fell swoop? Does this then become a hacker's final boss to invade?

I want armed internet guards surrounding the Singleton at all times.

Cexes and dexes get challenged, we’ll get on this later.

In short, UniSwap V4 will become the go-to dex for devs to build on top of. Because if you can’t beat them… build on them.

What does this mean for DeFi?

Innovation is happening.

And from what I can gather, Hayden Adams, Founder of UniSwap, wants to retain his title as the largest go-to trading dex across all chains, recapture the volume flowing through aggregators and become the hub of on-chain cex-style trading.

With customisation (Hooks) and gas efficiency (Singleton) at the forefront of Uni V4, DeFi is set to benefit greatly.

Implementing a seamless “limit order” hook could be one of those “zero to one functionalities” that gives traders, degens and normies the reason to make UniSwap their default trading hub.

No more needless trust given to the exchanges when leaving stink bid limit orders overnight and no more worries about getting rekt by on-chain gas fee spikes.

If you can think it and code it, you can probably hook it.

With that in mind, Uni V4 might prove troublesome for on-chain trading perps platforms

One thought to consider is if and/or how Uni V4 will stop or absorb the flow of magical internet money flowing to on-chain perps dexes. Will crypto gamblers speculators who enjoy a simple, easy and cheaper experience want to play around with leverage trading, liquidations and often shoddy UI?

Composability creates innovation and innovation is coming (maybe just slowly).

Outsourcing the public.

V4 is being built in the public view and outsourcing devs letting them tinker, share their feedback and begin building bad azz hook designs & integrations so that… wen launch happens, pool creators will have a list of customisations they probably never thought they could have.

Thus making DeFi fun (and hopefully profitable) again.

As the saying goes, work smarter, not harder.

Our take.

From the outside in, it looks as if UniSwap is fully positioning itself for the next bull run and doing everything in its power to solidify its position in the markets as the King Pin and maintain its stoppable god-tier trading volume positioning.

Is it a Balancer fork? While there might be similarities, UniSwap is still King with bear market weekly volume numbers that speak for themselves.

On paper, V4 has a lot of potential in becoming your unfair advantage against the rest of the market. It will play its part in levelling up DeFi along with the other King of DeFi, Trader Joe.

👀 DeFi insights.
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The World of DeFi.

• Aevo - reached $7.5m option open interest & $6.5m 24h volume. (Twitter)

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• J Page - The official Rumas NFTs have been revealed (Twitter)

• Maia DAO - 3 weeks left of one of the BIGGEST code4renas with $300k up for grabs. (Twitter)

• Optimism - The Optimistic Series 4-month journey has begun on Tide Protocol. (Twitter)

• ParallelTCG - Release “Colour Research Update IV” plus Galaxy Key holders received an airdrop. (Twitter)

• Solana Monkey Business - Gen 3 mint begins June 27th. (Twitter)

• Unlocks coming - Euler $EUL & Space ID $ID by June 22nd with Acala $ACALA by June 26th. (Token Unlocks)

• YoloNolo - Discord trading bot, powered by HXRO Network, will be launching perps very soon. (Twitter)

Governance Updates.

• AAVE - Community rejected the recent proposal to freeze $CRV tokens on V2 (The Block)

• Curve Finance - Proposal opened to accept wETH as collateral to mint up to 200 million $crvUSD stablecoin. (Curve)

• dYdX - Voted to pass the proposal for sub-DAO V2 launch and $6.6 million funding request. (dYdX Gov)

• Frax Finance - Frax finance founder supports Ouroboros Capital's proposal for aggressive by-backs. (Frax Gov)

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🗞 In the news.
The important bits.

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• ETH validator requirement increases as devs consider increasing the requirement from 32 to 2,048 ETH. (The Block)

• Fidelity to rival Blackrock with a BTC ETF as rumours spread. Sources speculate a purchase of GrayScale. (Twitter)

• The IMF reveals global CBDC plan for cross-border payments by enhancing the global payments infrastructure. (Coindesk)

👨🏻‍💼 What the FED?!

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🐥 Twitter reads.
In case you missed it.

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And on that note, thanks for reading, catcha apes in the next edition!

blocmates team 🫡

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