Does Uniswap’s latest addition give it the upper hand over its peers?

• Uniswap’s new addition to its upcoming v4 obtained funding from a agency.
• Protocol exercise continued to say no as TVL and charges begin to deplete.

Uniswap[UNI] has lengthy been a dominant DEX within the DeFi sector. To take care of its dominance, the protocol has actively pursued future developments and secured monetary backing for these initiatives.

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A paradigm shift

Paradigm, a expertise funding agency, stated that it is going to be investing in Hooks on high of Uniswap v4. For context, hooks are contracts that execute at completely different levels of a pool motion’s lifecycle in Uniswap v4.

Uniswap liquidity swimming pools undergo numerous levels throughout their lifecycle, involving actions corresponding to pool creation with a default payment tier, liquidity changes, and token swapping. In Uniswap v3, these occasions are tightly linked and comply with a strict sequence.

To allow extra flexibility in Uniswap v4 and permit customizable liquidity, hooks have been launched. These hooks function plugins, empowering pool deployers to include designated actions at key factors within the pool’s lifecycle. They are often utilized earlier than or after a swap, or earlier than or after an LP place is modified.

1/ Certainly one of our favourite issues to do at EthCC was speaking to devs enthusiastic about v4 hooks!

Right here’s a of a few of the cool ones we’ve seen since saying v4

— Uniswap Labs (@Uniswap) July 26, 2023

These hooks will convey new functionalities to the protocol. For instance, Uniswap is planning to introduce a time-weighted common market maker (TWAMM), which can assist unfold out massive orders over time. Moreover, they’re exploring the thought of implementing dynamic charges primarily based on components like market volatility. Onchain restrict orders, one other upcoming characteristic, will permit customers to position orders straight on the blockchain.

Moreover, they’re contemplating permitting liquidity to be deposited outdoors the standard value vary into lending protocols. These hooks will give builders extra customization choices and adaptability, enabling them to create distinctive AMM swimming pools that combine seamlessly with Uniswap’s good contracts.

Practical or not, right here’s UNI’s market cap in BTC’s phrases

Uniswap faces hassle

Regardless of these updates, the exercise on the Uniswap protocol had began to say no. This was indicated by the falling TVL of Uniswap, which decreased by 6.4% during the last month. Subsequently, the charges collected on the protocol additionally took a success. For the reason that final 30 days, the charges collected on Uniswap declined by 9.4% in keeping with Token Terminal’s information.

Supply: token terminal

In distinction to the state of the protocol, the UNI token noticed vital development. Santiment’s information indicated that UNI’s value surged during the last month. In tandem with its value, the variety of UNI token holders additionally grew.

Supply: Santiment