Uniswap announced the release of the Uniswap v4 code draft so that v4 can be built publicly. The vision of Uniswap v4 is to allow anyone to make these trade-off decisions by introducing "hooks". Hooks are contracts that run at various points in the lifecycle of a pool's operation, and pools can make the same trade-offs as v3, or they can add entirely new features. For example, v4 will allow the pool to natively support dynamic fees, add on-chain limit orders, or act as a time-weighted average market maker (TWAMM) to spread large orders over time. In addition, v4 pools will exist in a single contract, which will reduce the cost of creating a pool by 99%.
Uniswap v4 code will be released under the Business Source License 1.1, which will restrict the use of v4 source code in commercial or production environments for 4 years, at which time it will be permanently converted to the GPL license. The protocol fee mechanism will also be modeled after v3. The governance layer will be able to vote to add protocol fees to any pool, but not exceed the cap amount.
