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- The Uniswap (UNI) is about to flood with smart contract developers seeking to provide liquidity to mainstream crypto adoption through the V4 protocol edition using the TWAMM pool hooks.
- The price of UNI had dropped about 2.7 percent in the past 24 hours to trade slightly below $4.18 on Monday and an average traded volume of approximately $50 million.
The Uniswap (UNI) ecosystem is preparing to take the Ethereum (ETH) ecosystem to mainstream users through a new perspective on its limpidity pools. With UNI adoption as the bigger picture, the Uniswap ecosystem announced its vision for a V4 version in mid-June this year to democratize its network to more headcounts in place of bots that facilitate fast trades to mine as much value from a block as possible. Moreover, the Uniswap network is working to enable seamless liquidity provision to over $1.6 trillion in trading volume.
The Vitalik Buterin-informed network has grown to a mature network with more than $27.9 million in WETH liquidity and over $3.127 billion in total value locked (TVL). The Uniswap network has become an integral part of the Ethereum network, which helps in ensuring the ultimate DeFi growth and mainstream adoption. Moreover, DeFi developers can seamlessly conduct Initial DEX Offering (IDO) with investors and users protected through auditable smart contracts.
Closer Look at Uniswap v4 TWAMM Hook
According to a blog post on the official webpage for Uniswap (UNI), the time-weighted average market maker (TWAMM) hooks were developed to allow token holders to get better prices through splitting a large single swap order into smaller ones that steadily execute over time. Furthermore, the smaller swap orders are less likely to move the market price hence enabling a favorable environment for institutional investors and fund managers to seamlessly enter the market.
“In Uniswap v4, each pool can insert hooks that run at various points of a pool action’s lifecycle. These hooks are smart contracts distinct from the core v4 liquidity contract. Orders are deposited into the TWAMM hook, and the user sets the duration they want their order to execut. These two parameters instruct the TWAMM hook to swap at the price of each block until the expiration,” the company explained.
Through the use of TWAMM hooks to swap between tokens, there is high protection for users from frontrunning MEV, which reduces the final swap value due to associated transaction fees. Essentially this is because TWAMM orders are always the first to be executed in a pool of action in a block.
UNI Price Action
The price of Uniswap (UNI) has found a bear-market support level around $4.2 and is likely to rebound anytime amid the October crypto bullish outlook. There are about 753 million UNI in circulation with a daily trading volume of approximately $50 million, meaning there is a notable demand, despite the crypto trading volume still low compared to bull market peaks. The UNI price is largely bolstered by overt 366k on-chain holders with more than 4.2 million recorded transactions.
