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Uniswap Foundation Unveils Major Upgrade Plan, UNI Price Skyrockets 52%

Uniswap (UNI), one of the industry’s largest decentralized cryptocurrency exchanges (DEXs), has set the stage for a major shift in its ecosystem with a proposed upgrade that could have significant implications for UNI token holders. 

The upgrade aims to bolster governance participation, enhance resilience, and reward token holders for active engagement within the Uniswap ecosystem.

Uniswap Takes Big Leap In Governance

Uniswap Foundation (UF) Lead Developer Erin Koen, while expressing his enthusiasm, has suggested that it has been the “biggest week in Uniswap Protocol Governance” and revealed a major upgrade proposal for the system.

At the heart of the proposed upgrade lies a fee mechanism designed to reward UNI token holders who stake and delegate their tokens. As announced, by actively participating in the governance process, token holders can earn additional rewards in the form of protocol fees. 

In addition to the enhanced rewards, the proposed upgrade seeks to fortify Uniswap Governance, making it “more resilient and decentralized.” 

According to Koen, by increasing the number of actively involved token holders, the governance structure becomes more robust, ensuring that decisions align with the collective interests of the UNI community. 

The proposed upgrade maintains governance control over core parameters such as fee-charged pools and fee magnitude. Token holders will collectively decide on these critical aspects, allowing for flexibility and adaptability in response to market dynamics. 

Beyond the immediate benefits, the proposed upgrade holds the potential for long-term value appreciation of the UNI token. By incentivizing participation and aligning token holders’ interests with the ecosystem’s success, Uniswap aims to foster organic growth and adoption. 

Assuming a successful on-chain vote, the community will have the option to activate fees. Gauntlet, a trusted entity, is reportedly preparing a proposed roll-out process that will be shared on the forum. 

Only after completing this separate governance process will fees be collected and distributed according to the adopted contracts. Koen further noted:

We’re excited to invigorate governance – incentivizing not only delegation but thoughtful and active delegation – by tying delegation to protocol fees. Specifically, we believe UNI token holders will be incentivized to choose delegates whose votes and engagement with the protocol will lead to the Protocol’s growth and success. If this proposal succeeds we believe we will see an influx of new delegations.

UNI Records 23-Month High

As these developments unfold, considerable excitement has emerged around the Uniswap protocol. Notably, a cryptocurrency investor named “Virtual Bacon” expressed enthusiasm, stating, “Uniswap finally proposes to share revenue with UNI token stakers. Chart exploding on this ‘proposal’ which hasn’t passed yet.” 

Within 24 hours, the UNI token witnessed a surge of over 52%, signaling the market’s anticipation of the potential benefits this upgrade could offer token holders.

Uniswap

Currently, the UNI token is trading at $11.29. However, with the unveiling of the upgrade proposal, the token quickly surged to the $12.50 level, reaching its highest point in 23 months. 

The gains over longer time frames have also experienced a dramatic surge. Over the past fourteen days, the UNI token has seen an impressive increase of 73%. Similarly, the token’s value has soared by 94% in the last thirty days. 

Overall, should the proposed upgrade be approved and implemented, Uniswap will reinforce its position as a leading DEX and establish a framework that empowers token holders and fosters the continued growth and success of the Uniswap protocol.

Featured image from Shutterstock, chart from TradingView.com

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Uniswap Expands Reach: Deploys v2 Protocol On Six New Chains Including Arbitrum And Polygon

Uniswap (UNI), one of the largest decentralized cryptocurrency exchanges (DEX) by trading volume, has made an important announcement regarding deploying its v2 protocol on six additional chains. 

The chains on which the v2 protocol has been deployed include Arbitrum (ARB), Polygon (MATIC), Optimism (OP), Base, Binance Smart Chain (BSC), and Avalanche (AVAX).

Uniswap Widens v2 Protocol Deployment

According to a recent post on X (formerly Twitter) by Uniswap Labs, the software product developer working on the protocol, the decision to deploy the v2 protocol on more chains is primarily driven by the desire to simplify the experience for Liquidity Providers (LPs).

While the protocol’s v3 offers advanced features tailored for active liquidity providers, the development team believes the v2 protocol offers a more “straightforward approach.” 

By default, v2 pools cover the entire price range, reducing the need for upfront decisions and minimizing the active involvement of liquidity providers. This simplification streamlines the process and makes it more accessible to a broader range of users, according to the announcement. 

Another benefit of using the v2 protocol on multiple chains, according to Uniswap Labs, is its cost efficiency. Creating pools on v2 is more gas efficient than other versions, resulting in lower gas costs to add liquidity. 

This cost reduction can be translated into savings for users, making swaps on the platform “incredibly affordable.” In addition, the use of v2 on Layer 2 scaling solutions significantly reduces the risk of frontrunning and manipulative practices known as Miner Extractable Value (MEV). 

Ultimately, by offering an official v2 deployment directly accessible through the Uniswap interface, the developers suggest that users can be assured of a safe and secure environment for their swaps.

UNI Price Dip, Platform Metrics Remain Solid

Despite the recent developments that could attract investors’ attention and drive broader adoption of the Uniswap protocol, the exchange’s native token, UNI, is currently undergoing a significant correction in line with the overall market trend.

Currently, UNI is trading at $7.22, representing a 4.4% price drop in the past 24 hours and a 1.1% decline in the last trading hour. However, it’s worth noting that UNI has been one of the better-performing tokens in the market, with price increases of 14.7% and 16.8% in the past fourteen and thirty days, respectively.

Uniswap

Furthermore, according to data from Token Terminal, the Uniswap ecosystem continues to exhibit substantial growth in key metrics. 

The fully diluted market capitalization of Uniswap stands at $7.56 billion, reflecting the total value of all tokens if they were fully in circulation. This figure has experienced a notable increase of 18.4% over the past month. 

In contrast, the circulating market capitalization, which considers the currently circulating tokens, is valued at $6.94 billion, indicating a 19.9% increase over the same period.

Uniswap

Despite the overall surge in market capitalization, the trading volume of the UNI token has experienced a significant decline of 69.3% over the past 30 days, amounting to $2.79 billion. 

The total value locked (TVL), a measure of the value of assets locked within Uniswap’s smart contracts, has also experienced a 14.4% increase, reaching $4.76 billion. 

Featured image from Shutterstock, chart from TradingView.com 

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UNI Jumps Over 12% – Here’s Why Investors Flock To This Token

A few outliers continue to break through the bearish attitudes looming over the crypto horizon of late. UNI is one of those tokens, with an impressive jump of over 12% in the past 24 hours, investors have flocked to this altcoin in search of a bullish continuation. 

The first quarter of this year brings a lot to the table for investors. Just this month, Uniswap reported that its deployment on Arbitrum led to the swap volume on the latter to jump by a significant amount. The news is also coupled with exciting new info on Uniswap’s latest agenda: the launch of Uniswap v4. 

What Is Uniswap V4? 

After news that Ethereum, Uniswap’s L1, will have its Dencun upgrade in this year’s first quarter, Uniswap then announced that their latest iteration of the protocol would be launched sometime in Q3 2024. 

In essence, Uniswap v4 is a more efficient and cost-effective brother of v3. According to Uniswap’s own website, it is a “non-custodial, non-upgradeable, and permissionless automated market maker protocol.”

In the announcement, v4 is currently in its first phase with the developers finalizing the core functionalities and features of the upgrade. The update would let the team create new features on top of the current AMM design of the protocol. This eliminates the need for creating an entirely new design from the ground up. 

Leading The Innovation Charge

Uniswap is also ramping up its effort in providing funding for innovators in the Web 3 space. Last week, the Uniswap Foundation X account released a detailed look at the organization’s new granting strategy. 

In short, the new strategy revolves around granting a minimum of $250,000 in four audience-specific categories: developers, researchers, delegates, and innovation (all stakeholders). 

For now, no date of implementation has been announced for these new grants. 

UNI: Challenging Week Ahead For Investors

The lead-up to the month of March has certainly brought a level of hype around the broader market, but thus hype has since died down and was replaced by profit-taking attitudes. UNI will inevitably experience this bearishness taking hold in the coming weeks as the market potentially dips. 

If this happens, investors and traders have strong support on the 50% and 38.20% price levels. These supports will slow down any bearish advance, stabilizing UNI’s price at the $7.3 and $7 range. 

Featured image from Adobe Stock, chart from TradingView

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Uniswap V4 Catalyst: UNI Token Primed For Growth As New Chain Launch Loom

Uniswap, one of the world’s largest decentralized exchanges (DEX), is poised for significant growth with the upcoming launch of its V4 upgrade. This anticipated update will introduce custom Automated Market Maker (AMM) functionality directly on top of Uniswap, eliminating the need for separate AMM designs.

In addition, Uniswap’s governance token, UNI, has seen notable growth, with a 6.8% increase in the last 24 hours and an 8% increase in the previous 30 days, bringing the UNI token to $7.318.

However, while these developments favor the exchange and investors, decentralized finance (DeFi) researcher DeFi Ignas has raised concerns regarding the launch and its potential impact on critical features.

The Ultimate DeFi Liquidity Solution With Uniswap V4?

According to DeFi Ignas’ latest analysis on X (formerly Twitter), Uniswap V4 represents a significant transformation from a protocol to a platform. Like the Apple Store’s impact on the iPhone, Uniswap V4 will consolidate all pools into a single framework, reducing creation costs by 99% and enabling more cost-effective multi-pool swaps.

The introduction of the “Hooks” system is particularly noteworthy. These hooks act as plugins or extensions, allowing for customized code execution during crucial events within a pool. 

The 13 available hooks enable various functionalities, including on-chain limit orders, time-weighted average market making, liquidity depositing into lending protocols, auto compound liquidity provider (LP) fees, and know-your-customer (KYC) integration.

Introducing hooks leads DeFi Ignas to believe that the launch of Uniswap V4 will allow developers to experiment and launch their protocols while leveraging Uniswap’s liquidity.

According to the researcher, this has the potential to attract even more liquidity from other decentralized exchanges and establish Uniswap as the dominant liquidity layer for all DeFi activities, from trading to lending.

Yet, while unified liquidity may benefit users by increasing market efficiency, it raises concerns about potential market concentration and stifling of competition.

UNI Token Gains Momentum

Uniswap’s V4 liquidity sourcing could concentrate liquidity within the platform, potentially making it the go-to liquidity layer for DeFi. According to DeFi Ignas, this dominance, coupled with Uniswap’s operating license that prohibits forking until 2027, raises questions about market competition and the potential impact on decentralized finance. 

In addition, reports suggest that Uniswap Labs has sent takedown notices to gateways of the InterPlanetary File System (IPFS) – a decentralized and distributed protocol designed to facilitate the storage and sharing of files on a peer-to-peer network – adding another layer of concern about decentralized access and censorship resistance.

Regarding the potential upside of Uniswap V4 acting as a catalyst for the exchange’s token, the research went on to suggest that while UNI’s value “accrual” for retail investors has been relatively modest, the introduction of Uniswap V4 and its hooks opens up new possibilities.

In this sense, DeFi Ignas believes the UNI token could function as a platform/ecosystem token, benefiting from third-party decentralized applications (dApps) developed using Uniswap’s hooks, expanding the token’s use cases and potentially attracting more investors.

Additionally, there is speculation that Uniswap may solidify its dominance and liquidity by launching its chain, potentially as a layer-two (L2) solution, which could further boost the valuation of the UNI token.

Uniswap V4

As the upgrade deadline for Uniswap approaches, the impact of the exchange’s upgrade on the UNI token remains uncertain. However, there has been a noticeable growth in the token’s value over the past few weeks. 

After reaching a 17-month high of $8.260 in January, the token experienced a correction but has since broken out of that pattern. As the upgrade deadline draws near, it is yet to be determined whether the token can consolidate its gains and regain previous levels.

Featured image from Shutterstock, chart from TradingView.com

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Developer Explains Why Meme Coins Are Shifting Base From Ethereum

Foobar, a code builder, criticizes Ethereum, accusing its developers of neglecting crucial improvements. Because of this shift, projects, including meme coin issuers, are adopting alternative protocols, including layer-2s and modern blockchains like Solana, which boast more features, mostly higher scalability. 

Ethereum Developers Are Blocking Mainnet Updates

Taking to X, the developer claims that there have been no major mainnet improvements chiefly because such upgrades are being blocked by core and client developers. Specifically, Foobar cites the long-standing delays for features like Trie State Storage Optimizations (TSTORE) and Externally Owned Account (EOA) batch transactions. The developer also noted the lack of block gas limit increase since 2021. 

The developer adds that the absence of main net updates and opcode improvements leading to the implementation of these proposals could be why decentralized apps (apps) launching on Ethereum are “bleeding tremendous value” due to high fees and limitations.

Ethereum price trending upward on the daily chart | Source: ETHUSDT on Binance, TradingView

TSTORE and EOA batch transactions are proposals that, if they see the light of day, could see Ethereum scale better. Specifically, proposers of TSTORE forwarded a solution to address storage bloat to improve performance. On the other hand, EOA will enable the bundling of transactions from the same sender, reducing gas fees. 

Meanwhile, Etherscan data shows that the block gas limit has been capped at around 30 million since August 9, 2021. Subsequently, Ethereum throughput remains low, and gas fees are higher, considering the high on-chain activity.

Ethereum block gas limit | Source: Etherscan

The failure of clients to integrate these proposals, the developer continues, makes Ethereum unusable for “any interesting app requiring moderate complexity.” Subsequently, many projects are migrating to layer-2s like Base, Arbitrum, Optimism, or entirely different blockchains like Solana and Avalanche due to limitations on the Ethereum mainnet.

Meme Coins Find Home In Solana And Others

As of mid-February 2024, more meme coin developers, reading from the popularity of emerging projects, are deploying from high throughput and low-fee platforms like Solana, Avalanche, and even Base. Meme coins like Bonk, Honk, and even the successful Bald on Base are examples.

Meanwhile, meme coin projects on Ethereum, like Pepe Coin (PEPE), appear to be losing market share as Shiba Inu, for example, launched Shibarium to offer its users lower transaction fees.

Foobar thinks the lack of improvements on the Ethereum mainnet is why Uniswap v4 has yet to launch. The new iteration of Uniswap, a popular decentralized exchange (DEX) powering Ethereum token swapping, is yet to release its latest version.

Based on existing documentation, v4 will include new features and functionalities, including Hooks. Supporters claim this tool will make the DEX more flexible, drawing more users once it goes live. 

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Uniswap Unveils New Security Feature: Will It Boost UNI Demand?

Uniswap Labs, the developer of Uniswap–a decentralized exchange, has introduced a new security feature called Permit2. Taking to X on January 18, the DEX developer said this update addresses the “infinite token allowances” vulnerability that hackers can exploit. This flaw risked user funds, and the new feature is meant to resolve this concern.

Uniswap Sealing Infinite Token Allowance Risks

In crypto, especially among decentralized finance (DeFi) protocols, the “token allowance” is permission initiated by the user granting smart contracts access to tokens. From there, assets can be moved.

With this permission, it becomes possible for users to interact with dapps, chiefly protocols that utilize user funds. Some of these dapps include, for instance, decentralized exchanges like Uniswap or lending platforms like Aave or Maker. 

While useful, “token allowance” can be exploited by hackers via “infinite token allowance,” where hackers can infinitely access and illegally withdraw funds from wallets, draining them as a result. Once a wallet has been compromised, it can be drained without the user’s knowledge since the compromised code already permits the hacker to move funds.

Aware of this risk, Uniswap Labs is introducing the open-source Permit2 as a solution. The tool, the DEX developer says, will give users more protection and, more importantly, control over digital assets.

A key feature of Permit2 is that users can set time limits on token approvals. Third parties can only access funds within a specific period in this arrangement. 

Additionally, the tool introduces a reusable token approval for simplicity. With this feature, end users don’t have to repeatedly grant access to their funds for each transaction. On the gas-saving fronts, Uniswap Labs say Permit2 also utilizes signature-based approvals and transfers. This means the tool can reduce gas fees when users transfer tokens.

Uniswap Building, UNI Remains Under Pressure

This enhancement precedes the upcoming release of Uniswap v4, which introduces Hooks. This new feature provides developers with more flexibility and control over their applications.

Analysts say the launch of Uniswap v4 and Uniswap Labs’ continuous enhancement to improve security might cement the DEX’s position.

Uniswap TVL | Source: DeFiLlama

According to DeFiLlama data, Uniswap has managed over $4.4 billion worth of assets. Even so, UNI prices continue to struggle. 

UNI price trending upward on the daily chart | Source: UNIUSDT on Binance, TradingView

Looking at the daily chart, UNI has resistance at around $8.1 and is currently down roughly 20% from December highs. Sharp losses below $6 might trigger a sell-off, forcing the token towards $4.5 or lower. 

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Whale Rapidly Stacking Uniswap, UNI To $10?

An active crypto whale has been steadily accumulating UNI, the native token to Uniswap, one of the world’s most active decentralized exchanges (DEXes). This development suggests that the address believes the token may edge higher in the coming trading days or weeks, extending gains after a sharp leg up on November 22 when UNI soared, breaking above key resistance levels. 

Whale Loading Up More UNI, Back To $10?

According to recent Lookonchain data, an Ethereum address, stevu.eth, withdrew 311,302 UNI worth $1.93 million from Binance, the world’s largest crypto exchange, on November 25, pushing its total UNI holdings to 511,301 UNI, or $3.18 million.

Notably, this acquisition follows a withdrawal of 500,545 UNI ($2.42 million) from OKX on June 29, which stevu.eth deposited to Binance and OKX in August. However, the recent accumulative behavior on November 25 indicates that the whale is bullish on UNI, possibly expecting prices to float back to $10, a level last seen in August 2022.

Uniswap price trending upward on the daily chart | Source: UNIUSDT on Binance, TradingView

Presently, UNI is trading within a bullish breakout formation, looking at the performance in the daily chart. Changing hands at around $6.2 when writing on November 27, the token is up approximately 60% from October lows. Even with the confidence, UNI prices have been mostly consolidating, moving horizontally at spot rates.

If buyers press on, a close above $6.6 with expanding volumes might confirm buyers of November 22. In that case, the resulting momentum might form the base for another leg up, pushing the token to August 22 highs of around $10.

Uniswap v4 Expectations

The whale’s confidence in UNI aligns with the ongoing development of Uniswap v4, an upgrade that will significantly enhance the DEX. In this update scheduled for a tentative period in 2024, Uniswap Labs, the team behind Uniswap, is introducing a concept called “hooks.” 

Hooks are contracts that can be executed at various stages of a pool’s lifecycle. According to the team, Hooks, which act as more plugins, provide increased flexibility and customization for Uniswap’s liquidity pools.

As such, it would be possible for users to enable features like dynamic fees, refined market making, and even advanced orders executed on-chain.

What’s notable about Uniswap v4 is the introduction of “singleton” contract architecture. All Uniswap liquidity pools will reside inside a single, smart contract in this design change. The team notes that this can significantly reduce gas costs and, more importantly, reduce routing efficiency across numerous pools.

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Uniswap V4 Expected To Be Huge, But Is This Requirement A Dealbreaker?

Due to its innovation, Uniswap Labs plans to introduce Hooks in the upcoming Uniswap v4, putting the world’s leading decentralized exchange in the spotlight. According to a critic on social media platform X, the DEX is on the know-your-customer (KYC)-verification route once Hooks on Uniswap v4 are released.

Uniswap Hooks and KYC| Source: "yourfriendSOMMI" on X

Uniswap v4 Hooks Is The Beginning Of Censorship?

Sharing screenshots, the user shared insights and said the exchange brings KYC verifications on the latest iteration. At the same time, the platform plans to use the “permission required” off-chain server on UniswapX for performance enhancements. 

UniswapX is an open-source solution allowing permissionless and open trading across Automated Market Makers (AMMs) and other liquidity sources. It is currently being tested on the Ethereum mainnet.

Though the community has embraced these developments, the critic said these requirements, especially the identity verification requirement on Hooks, will be available as an option before being gradually made mandatory down the line.

Uniswap v4 is being developed, and Hooks will be one of the key updates. Hooks are programmable extensions for customizing pool and trade behavior, tightly integrated with Uniswap’s core protocol. 

With Hooks, it becomes easier for developers to implement other features such as dynamic fees, on-chain limit orders, and overly improved customization. In this way, it will also be possible to integrate Uniswap v4 into other protocols.

Uniswap Evolution: Building “Real” DeFi?

The DEX has constantly evolved and released new features since the first version went live in late 2018. Uniswap v1 introduced AMM, opening up decentralized finance (DeFi). This allowed liquidity providers (LPs) to be crucial to market making. 

Uniswap price on October 16| Source: UNIUSDT on Binance, TradingView

In Uniswap v3, the exchange released concentrated liquidity (CL). This feature allows LPs to specify a price range within which they are willing to provide liquidity. In Uniswap v2, LPs provided liquidity across the entire price range of the token pair. In v3, liquidity depth increases while traders get better pricing.

Despite the criticism, Hooks has been supported in some quarters. For instance, the user acknowledged that the feature would amplify the value proposition of some protocols, making them real “DeFi” platforms. At the same time, while responding to the critic, another commentator said the feature will do more than what anybody else has done for “real DeFi.”