Uniswap developer and founder Hayden Adams recently shared a post on X highlighting the gas efficiency of the newly launched Uniswap v4. He underscores nearly 92% reduction in gas consumption with Uniswap v4 compared to its older version, v3.
The drastic decrease in gas fees is primarily attributed to v4’s novel “singleton” architecture. This advancement is poised to make decentralized trading more accessible and cost-effective within the DeFi ecosystem.
In his experiment, Adams created liquidity pools on both versions v3 and v4. He shares that the v3 pool creation consumed 5,165,447 gas, translating to approximately $57.42 in transaction fees. On the other hand, the same process required only 431,860 gas on v4, costing merely $4.63.
Unlike v3, where each liquidity pool operates under a separate contract, v4 consolidates all pools into a single smart contract. This development minimizes the need for multiple token transfers between distinct contracts during transactions, this directly leads to significant gas savings.
With the introduction of ‘hooks’ in v4, Uniswap now offers developers the flexibility to implement features such as dynamic fees, on-chain limit orders, and time-weighted average market makers (TWAMMs).
Hooks are customizable smart contracts that execute at various stages of a liquidity pool’s lifecycle. This feature not only enhances functionality but also contributes to gas efficiency by streamlining operations within the unified singleton framework.
While average gas price has fallen to record low levels and gas limit has recently increased, Ethereum is going through a wave of new developments. Adding to this, the Uniswap v4 could significantly push Ethereum’s DeFi ecosystem further to masses, potentially reaching to 2021 highs.
