Uniswap Founder Hayden Adams on How ‘Hooks’ Make v4 Different - Ep. 508

Jun 20, 2023

Hayden Adams, the founder and CEO of Uniswap, shares insights on the latest advancements with Uniswap v4. He dives into the innovative 'hooks' feature, explaining how it enhances liquidity management while addressing concerns over security and potential exploits. The discussion also touches on the evolution of Uniswap since 2018, debates around open-source principles, and the significance of the new fee structure. Hayden responds to criticisms regarding plagiarism and discusses the implications of upcoming Ethereum upgrades on the platform.

Ask episode

AI Snips

Chapters

Books

Transcript

Episode notes

ANECDOTE

Uniswap V1 Launch

Uniswap V1 launched in 2018 as a side project with a grant from the Ethereum Foundation.
It gained traction due to its decentralized nature, allowing anyone to create assets and liquidity pools.

INSIGHT

Simplicity vs. Sophistication

Uniswap's simple X * Y = K model was initially criticized for being too simplistic.
However, its simplicity and open access proved beneficial, enabling broad participation despite some inefficiencies.

ANECDOTE

SushiSwap's Unexpected Boon

The SushiSwap "vampire attack", while initially a challenge, ultimately benefited Uniswap.
It demonstrated the protocol's resilience at scale and led to increased liquidity and trading volume.

Get the Snipd Podcast app to discover more snips from this episode

Get the app

The announcement of the upcoming launch of Uniswap v4 sparked fresh versions of old debates. Is it OK for DeFi’s leading DEX to not be fully open source at launch? What counts as composability and what counts as plagiarism? Is Uniswap’s dominance a threat to decentralization? Founder Hayden Adams joins the show to respond to the critics and explain the novel features of Uniswap v4.

Listen to the episode on Apple Podcasts, Spotify, Overcast, Podcast Addict, Pocket Casts, Stitcher, Castbox, Google Podcasts, TuneIn, Amazon Music, or on your favorite podcast platform.

Show highlights:

how Uniswap was born and how it has evolved since 2018
how the SushiSwap vampire attack was a win for Uniswap
whether the new version of Uniswap brings it closer to the true ethos of Ethereum
what the problems were with the previous fee model and how the new v4 approaches fee tiers
an explanation of “hooks,” the most important feature of the new code
what Hayden thinks the most common uses of hooks will be
how v4’s time-weighted average market maker (TWAMM) feature works
whether Hayden is worried that hooks will be engineered to do rug pulls
what Hayden thinks about v4’s new “singleton” approach
how EIP-1153 (if implemented) will make Uniswap v4 more efficient
when Hayden estimates that the v4 code will be deployed
why Uniswap decided to go with a four-year business license
Hayden’s response to allegations that Uniswap plagiarized Crocswap for its v4 code
whether there’s a risk that U.S. authorities blacklist certain transactions on v4
whether it is possible to add KYC and AML compliance into v4 pools
why Hayden is sad about the U.S. approach to regulating crypto
why he believes that Uniswap will not become a centralizing force

Thank you to our sponsors!

Guest: