The Uniswap Protocol has undergone significant advancements since its inception, with four major versions deployed on the Ethereum blockchain. Each iteration introduces innovative features to enhance trading efficiency, liquidity provision, and developer flexibility.
Key Versions of Uniswap Protocol
Uniswap v1 (2018)
- Pioneering AMM: Launched as the first automated market maker (AMM) protocol natively pairing tokens with ETH.
- Open Source: Licensed under GPL, fostering community collaboration.
Uniswap v2 (2020)
- ERC-20 Token Pairs: Enabled direct token-to-token swaps (beyond ETH pairs).
- Enhanced Flexibility: Expanded trading options and liquidity pools.
- Open Source: Retained GPL licensing for transparency.
Uniswap v3 (2021)
- Concentrated Liquidity: Allowed liquidity providers (LPs) to allocate capital within specific price ranges, optimizing capital efficiency.
- Customizable Fees: Introduced multiple fee tiers (0.05%, 0.30%, 1.00%) for diverse pool strategies.
- Licensing: Open source with minor modifications (view license).
Uniswap v4 (2025)
- Reduced Costs: Lowered network fees for LPs and traders.
- Hooks Framework: Enabled developers to build custom AMM features (e.g., dynamic fees, limit orders) via modular "hooks."
- Advanced Pool Customization: Added more fee tiers and on-chain liquidity pool adjustments.
👉 Explore Uniswap v4’s groundbreaking features
Why Upgrade to Uniswap v4?
- Capital Efficiency: Hooks allow LPs to deploy liquidity precisely where it’s needed.
- Developer Freedom: Create bespoke DeFi solutions leveraging Uniswap’s existing infrastructure.
- Cost Savings: Optimized gas fees make transactions cheaper.
👉 Learn how Uniswap v4 hooks work
FAQs
1. Can I still use Uniswap v2 or v3?
Yes! All versions remain operational on Ethereum. Choose based on your needs.
2. What are "hooks" in Uniswap v4?
Hooks are smart contracts that enable custom logic (e.g., TWAM orders, fee adjustments) atop the protocol.
3. How does v4 improve liquidity provision?
By reducing gas costs and offering granular control over liquidity allocation.
4. Is Uniswap v4 open source?
Yes, with resources like the whitepaper and sample hooks available.