Uniswap V4 — what's new and what's next
ETH Uniswap V4What's new in Uniswap V4?
UniswapUniswapAn Ethereum concentrated-liquidity protocol (V3/V4). Its Solana counterpart is Orca.Read the lesson → V4 is a major upgrade. V3 was about concentrated liquidity (how to provide liquidity more efficiently). V4 is about modularity and efficiency.
Three main innovations:
- A singleton contract — one contract for every pool
- The Hooks system — programmable add-ons for every pool
- Flash Accounting — cheaper gas
The singleton contract
The V3 problem
V3 deploys a separate contract for every pool. That means:
- Thousands of separate contracts
- SwappingSwapExchanging one token for another. E.g. SOL to USDC via Jupiter. between different pools = multiple transactions = more expensive
The V4 solution
The hotel analogy
V3: every pool has its own "house." To visit several pools, you travel between houses. Expensive and slow.
V4: every pool lives in a single "hotel." Moving from one pool to another is just walking from room to room. Faster and cheaper.
| Uniswap V3 | Uniswap V4 | |
|---|---|---|
| Number of contracts | 1 per pool | 1 for all |
| Multi-hop swap cost | Expensive (several transfers) | Cheap (internal accounting) |
| Creating a new pool | Expensive (millions of gas units) | Cheap |
The Hooks system — the biggest innovation
Hooks are add-ons you can "plug into" a pool. They bolt on extra logic.
Hooks = an app store
Like a phone with apps: the phone itself (the pool) works fine on its own, but with apps (hooks) it can do a lot more — calculate, monitor, automate.
What can Hooks do?
| Hook point | When it fires | What it can do |
|---|---|---|
beforeSwap | Before every swap | Adjust the fee based on market conditions |
afterSwap | After a swap | Collect stats |
beforeAddLiquidity | Before an LPLPLiquidity Provider — deposits tokens into a pool and earns a share of trading fees.Read the lesson → deposit | Check who's allowed to join |
afterAddLiquidity | After an LPLPLiquidity Provider — deposits tokens into a pool and earns a share of trading fees.Read the lesson → deposit | Auto-stake |
Hooks examples
1. Dynamic fees: Calm market = low fee. Volatile market = higher fee. Protects LPsLPLiquidity Provider — deposits tokens into a pool and earns a share of trading fees.Read the lesson → from losses.
2. Auto-reinvesting: A hook automatically reinvests earnings. Nothing to do by hand.
3. Limit orders: Set your price, and the hook executes automatically.
Flash Accounting — cheaper gas
Flash Accounting lets you perform several actions at once, checking the balance only at the end.
How it worked in V3:
Swap A → B: 2 transfers
Swap B → C: 2 transfers
Total: 4 transfers = 4x gas
How it works in V4:
Swap A → B → C: internal accounting
At the end: 2 transfers
Total: 2 transfers = 2x gas
| Operation | V3 Gas | V4 Gas | Savings |
|---|---|---|---|
| Simple swap | ~130,000 | ~100,000 | ~23% |
| SwapSwapExchanging one token for another. E.g. SOL to USDC via Jupiter. through 2 pools | ~260,000 | ~150,000 | ~42% |
| SwapSwapExchanging one token for another. E.g. SOL to USDC via Jupiter. through 3 pools | ~390,000 | ~180,000 | ~54% |
Native ETH — simpler
V3 required you to "wrap" ETH into WETH (an extra transaction). V4 supports native ETH directly. That means:
- No extra step
- Saves ~45,000 gas per swap
- Simpler for the user
When to use V4 vs V3?
| Situation | Recommended | Why |
|---|---|---|
| Long-term LPLPLiquidity Provider — deposits tokens into a pool and earns a share of trading fees.Read the lesson → position | V3 | Well-tested, plenty of liquidity |
| SwappingSwapExchanging one token for another. E.g. SOL to USDC via Jupiter. through multiple pools | V4 | Cheaper gas |
| Need dynamic fees | V4 | HooksHookA programmable add-on for a Uniswap V4 pool — custom logic that runs before or after a trade.Read the lesson → support this |
| Frequent operations (collect, move, swap) | V4 | Lower gas adds up over many transactions |
| Maximum liquidity | V3 | Still has more TVLTVLTotal Value Locked — the total value deposited in a DeFi protocol. An indicator of how popular a protocol is. for now |
Hooks — what's worth checking before you trust one
Since anyone can build a HookHookA programmable add-on for a Uniswap V4 pool — custom logic that runs before or after a trade.Read the lesson →, it's worth asking a few questions about each one. This is standard DeFiDeFiDecentralized Finance — financial services without intermediaries, operating through smart contracts. hygiene — once you know what to look for, checking takes a few minutes.
- An unaudited Hook → only pick HooksHookA programmable add-on for a Uniswap V4 pool — custom logic that runs before or after a trade.Read the lesson → that a known auditor has reviewed
- A malicious Hook → use HooksHookA programmable add-on for a Uniswap V4 pool — custom logic that runs before or after a trade.Read the lesson → recommended by the UniswapUniswapAn Ethereum concentrated-liquidity protocol (V3/V4). Its Solana counterpart is Orca.Read the lesson → Foundation that already have significant TVLTVLTotal Value Locked — the total value deposited in a DeFi protocol. An indicator of how popular a protocol is.
- A centralized Hook (the owner can change the rules) → before you put money in, check whether the logic is fixed or can be changed
You can check each of these yourself in a few minutes — the point isn't to fear HooksHookA programmable add-on for a Uniswap V4 pool — custom logic that runs before or after a trade.Read the lesson →, it's to choose deliberately.
V4 and DeFi Risk OS
DeFiDeFiDecentralized Finance — financial services without intermediaries, operating through smart contracts. Risk OS platform support for V4 will arrive during Phase 2. Right now we support V3.
| Feature | V3 | V4 |
|---|---|---|
| LPLPLiquidity Provider — deposits tokens into a pool and earns a share of trading fees.Read the lesson → position tracking | Yes | Planned |
| Earnings calculation | Yes | Planned |
| IL calculator | Yes | Planned |
V3 vs V4 — in short
- V3 = concentrated liquidity (how to provide liquidity more efficiently)
- V4 = modularity + efficiency (how pools can get smarter)
V4 doesn't replace V3. Both versions run side by side. LPsLPLiquidity Provider — deposits tokens into a pool and earns a share of trading fees.Read the lesson → can choose whichever fits them better.
Once you understand SingletonSingletonA single Uniswap V4 contract shared by all pools — cheaper operations.Read the lesson →, HooksHookA programmable add-on for a Uniswap V4 pool — custom logic that runs before or after a trade.Read the lesson →, and Flash Accounting, you can evaluate a specific pool for yourself and decide whether V4 is worth it, or whether you'd rather stick with V3 — you're deciding with arguments, not gut feeling.
Up next: Let's move to SolanaSolanaA fast blockchain (under 1s, gas under $0.01). Home to the Kamino, Orca and Meteora ecosystem. — the OrcaOrcaA Solana DEX with concentrated liquidity (Whirlpool). The basis of our LP strategy on the Solana network.Read the lesson → WhirlpoolWhirlpoolOrca's concentrated-liquidity engine. Works similarly to Uniswap V3, but on the Solana network.Read the lesson → protocol, with SolanaSolanaA fast blockchain (under 1s, gas under $0.01). Home to the Kamino, Orca and Meteora ecosystem. speed and prices.
The best way to understand V4 is to see it side by side with V3. Takes about 10 minutes, no wallet needed.
We're ONLY exploring — don't open a position, and you don't need to connect a wallet. Remember: Uniswap = Ethereum/Arbitrum ONLY, it doesn't exist on Solana.
This is learning, not investing — use only small amounts you treat as tuition.
You just live-compared a V3 and a V4 pool — TVL, Volume, hooks — and decided for yourself which version you'd pick. Most people never run this kind of analysis.