Launch Hinges On Ethereum’s Upcoming Cancun Upgrade

The crypto community eagerly awaits a new product as Uniswap Foundation tentatively hints at a timeline for the debut of the Uniswap version 4 protocol. This launch is supported by two pivotal milestones: the implementation of Ethereum’s Cancun upgrade and the subsequent completion of a security audit.

A Waiting Game: Uniswap v4 And Ethereum’s Cancun Upgrade

Erin Koen, who holds the reins as the Governance Lead at the Uniswap Foundation, shared insights on the awaited rollout of Uniswap’s v4 protocol. According to Koen, the definitive timeline for the v4 launch is targeted for later in the year, but this projection is not without contingencies.

One milestone that stands as a prerequisite to the v4 launch is the completion of the much-anticipated Cancun upgrade of the Ethereum platform, currently earmarked to conclude by the end of September.

Following the Cancun upgrade, a security audit remains a stage in the process. This stage isn’t a minor formality but an evaluation that ensures the new protocol is secure. Such an audit, Koen explained, can span up to four months.

The foundation is committed, Koen added, to taking the necessary time for this audit to uphold the security and integrity of the Uniswap ecosystem, emphasizing that user safety remains a top priority. Therefore, while the v4 launch is on the horizon, these significant milestones must first be met.

Uniswap v4, with its draft code made public on June 13, signifies a paradigm shift towards a modular exchange structure. Central to this transition are “hooks,” smart contracts that allow customizations in Uniswap’s liquidity pools, such as fees, on-chain limit orders, and bespoke on-chain oracles.

Uniswap v4 also debuts a novel “flash accounting” system designed to lower fees for liquidity providers. A departure from the v3 model, where assets were transferred into and out of pools post each swap; the v4 model will transfer only net balances.

This system, known as “transient storage,” will become operational after integrating the proposed EIP-1153 change in Ethereum’s protocol during the Cancun upgrade. The Uniswap team believes this mechanism would reduce transaction costs on the new product. 

Road Ahead: Next Steps For Uniswap v4

Koen highlighted the imminent ‘protocol code frozen’ stage of v4’s development process. This stage incorporates the EIP-1153 into the v4 code, making the launch subject to the successful inclusion of EIP-1153 into the Cancun upgrade.

As the Ethereum community awaits the Cancun upgrade, anticipation mounts for what the next iteration of Uniswap will bring. It is a critical moment for the DeFi space, as these advancements could reshape the landscape and bring about a new era of decentralized exchanges.

Meanwhile, over the past 24 hours, Uniswap governance token UNI has been moving sideways 0.4% with a market price of $5.39 at the time of writing.

Featured image from Shutterstock, Chart from TradingView