Uniswap V4 Goes Live: Lower Fees, Modular Design, and Multi-Chain Support

• UNI token dipped 1% post-launch; analysts monitor adoption of hooks and layer-2 expansion via Unichain.
• Modular “hooks” allow developers to customize fees, rebalance assets, and build DeFi tools via smart contract plugins.

Uniswap deployed Version 4 of its decentralized exchange (DEX) on Friday, introducing reduced gas fees for liquidity pool creation and modular tools for developers. The upgrade, developed through open-source contributions from over 100 participants, now operates across 12 blockchain networks, including Ethereum, Arbitrum, Base, Avalanche, and BNB Chain.

Uniswap v4 is here🦄

Users can LP on v4 through the Uniswap web app and swapping is rolling out over the coming days on web and wallet as liquidity migrates to v4

Live on Ethereum, Polygon, Arbitrum, OP Mainnet, Base, BNB Chain, Blast, World Chain, Avalanche, and Zora Network pic.twitter.com/fXC9GHEsaL

— Uniswap Labs 🦄 (@Uniswap) January 31, 2025

Version 4 cuts gas costs for launching liquidity pools by 99.99% compared to its predecessor . The update integrates programmable “hooks”—smart contract plugins that let developers modify pool mechanics, such as fee structures or rebalancing logic. 

Over 150 hooks have been built via grants funded by the Uniswap Foundation . These plugins enable protocols to automate tasks, like adjusting fees during volatile market periods or reallocating assets to maintain liquidity ratios.

Liquidity providers (LPs) can now deposit assets into V4 pools through Uniswap’s interface . Token swaps will phase in as liquidity migrates from older versions. Since 2020, Uniswap’s V2 and V3 have executed over $2.75 trillion in cumulative trading volume.

To mitigate risks, the team completed nine third-party audits and offered a $15.5 million reward for identifying vulnerabilities before launch.

The Uniswap Foundation framed V4 as a tool for blockchains to attract decentralized finance (DeFi) activity, for protocols to customize user experiences, and for developers to experiment with on-chain financial products. For example, a lending protocol could use hooks to automatically adjust collateral ratios, or a trading platform could implement time-weighted fee models.

Data shows Uniswap dominates 58% of all DEX volume. Its multi-chain expansion and fee reductions could further widen this gap, particularly as layer-2 networks like Base and Arbitrum scale Ethereum transactions.

However, technical complexity remains a barrier; smaller projects may struggle to integrate hooks without specialized developers.