What To Know About the Newest Version

Uniswap V4 is here. The ecosystem has been a long way since 2018 and has become of works as a simple automated market maker. With V4, Uniswap has simplified processes, cheaper and more flexible for the decentralized financial DEAS and users. So what exactly does V4 bring to the table and how does it relate to earlier versions? This guide treats everything you need to know about the latest version of the decentralized exchange in 2025.

What is Uniswap V4: how else is it?

Uniswap V4 is the latest upgrade to the world’s largest decentralized exchange, designed to lower trading costs, improve efficiency and to give users more control over liquidity and reimbursements.

Uniswap V4 is the Defi -City conversation in 2025. Here is a quick overview of all the new functions that packaged:

1. Much lower gas costs – up to 99.99% cheaper to create liquidity pools.
2. HOOKS – Developers can adjust the trading logic (such as dynamic costs and orders limit).
3. FLASH Accounting – Leaves unnecessary token transfers, which saves gas costs.
4. Dynamic costs – Polish can automatically adjust costs based on market conditions.
5. Indigenous ETH support – No more squeezing ETH in Weth for acting.
6. Singleton Contract – Uniswap V4 manages all pools under one contract, which lowers the complexity with different notches.

Creating Uniswap V4 positions: Uniswap

Uniswap -versions compared

All available versions: Uniswap

Uniswap V4 Features: A Deep Dive

In the following sections we will look better in every new feature.

The biggest change: the Singleton contract

For (V3): Each new liquidity pool required a separate smart contract, making transactions more expensive.
Now (V4): One large contract (Singleton Design) deals with all pools under one roof, so that the gas costs are considerably reduced.

Uniswap V4Pools with relatively low liquidity: uniswap

The most important concepts are of course already memed:

Crochet

For (V3): The logic of uniswap was determined – transactions followed a fixed pattern and liquidity providers had limited control.
Now (V4): Developers can add adapted trade rules with hooks.

Uniswap v4 swap mechanism: uniswap blog

With hooks you can:

• Set up dynamic costs that automatically adjust during high volatility.
• Create limit orders, so that only a swap happens if the price is good.
• Auto-Kroest LP rewards without manual intervention.

What’s going on with Flash Accounting?

For (V3): Every time you exchange tokens, Uniswap tokens transfers back and forth several times by trade.
Now (V4): Uniswap keeps track of all balance changes internally and only has the final amount, which reduces gas costs.

Dynamic

This function brings smarter prices for Swaps. Here are the differences:

For (V3): Polish had fixed costs (0.05%, 0.3%, 1%), which means that LPS could not adjust based on market trends.
Now (V4): Costs can rise during the high volatility and decrease during quiet periods, so that the LP income is optimized.

Indigenous ETH support

For (V3): You had to wrap Eth in Weth before you acted.
Now (V4): You can act with native ETH, save extra gas costs and simplify transactions.

Better liquidity management with subscribers

For (V3): If you wanted extra rewards to offer liquidity, you had to use your position, which means that you have registered the check temporarily.
Now (V4): Subscribers allow you to earn rewards without giving control of your funds.

Who should switch to Uniswap V4?

You can consider using V4:

• If you are a trader: you get lower gas costs, native ETH support and more efficient swaps.
• If you are a liquidity provider: you can optimize your liquidity with hooks and earn better rewards with dynamic costs.
• If you are a developer: you get full control over trade strategies with adapted hooks.

Or, if you are completely looking for an alternative to uniswap, the X messages below contain a few options.

How do Polish work in Uniswap?

If you have previously used Uniswap, you have had an interaction with liquidity pools – but you may not know how they work behind the scenes.

How Polish worked in Uniswap V3 versus V4

For (V3): Each trading couple had its own separate smart contract, which means that if you wanted to act in multiple Polish, Uniswap had to communicate with multiple contracts, increase gas costs and delay things.
Now (V4): Polish no longer live in separate contracts. Instead, they all exist in one big contract called the Pool Manager.

This means:

• Making a new swimming pool is planning 99.99% cheaper Compared to previous versions – because you do not implement completely new contract.
• Multi-Hop Swaps (Exchange by multiple pools) are much cheaper-out of that tokens don’t have to move that much.
• All swimming pools are managed in one place, making everything faster and more efficient.

V3 also left another problem to solve – how tokens move within Polish. Every trade or liquidity adjustment in earlier versions required several ERC-20 transfers, which unnecessarily increased gas costs.

Business pools: Uniswap

ERC-6909: A more gas efficient tok system for Polish

In Uniswap V4, the protocol has been upgraded from ERC-1155 to ERC-6909 To optimize token claims, repayments and liquidity positions.

Now ENISWAP V4-6909 is introducing a lighter and more gas-efficient token standard that helps the liquidity providers and traders to save on reimbursements by reducing unnecessary external calls.

What this means for liquidity providers and traders:

• Lower gas costs when providing or removing liquidity.
• More efficient liquidity management -LPS does not have to move ERC-20 tokens every time they communicate with the swimming pool.
• High-frequency traders and liquidity managers benefit the most because they avoid expensive ERC-20 property inspections and transfers.

The current status of Uniswap V4

Yes, uniswap v4 is live. But more is happening in the background:

• V4 is implemented on 10+ block chains, including Ethereum, Polygon, Arbitrum, on MAINNET, BASE, BNB chain, Blast, World Chain, Avalanche and Zora Network.
• Liquidity still migrates – many traders still use V3 -Pools, but new liquidity is added to V4 every day. Polish can be available on time.
• Swaps are routed by the V2, V3 and V4 via Uniswapx, which will automatically find the best price for you.

Supported Blockchains: Uniswap V4

Remark: If you exchange, you don’t have to do anything – Uniswap automatically routes your trade to the best pool (whether it is V2, V3 or V4). Even if you offer liquidity, you now have a choice. You can stick to V3 if you want, or migrate to V4 for lower gas costs and increased adjustment options.

Uniswap v4 versus older versions

UNISWAP V4 brings cheaper transactions, more flexibility and advanced functions, making it the best choice for most users. V3, however, still has a lead in deep liquidity, and some traders and LPS may prefer the fixed reimbursement structures and the established ecosystem. For now, V4 is the future, but V3 and V2 still meet specific needs, so your decision must be based on your trading style and liquidity strategy.