Uniswap Labs unveils Uniswap v4 plan, seeks community input.

Uniswap Labs has announced its vision for the next version of its crypto exchange platform, Uniswap v4. It is inviting community feedback on Uniswap v4 before its public launch, as a strategy focused on community input to underscore Uniswap’s dedication to decentralization. Uniswap is widely credited for popularizing automated market makers (AMM), a type of blockchain-based computer program that facilitates trades between cryptocurrencies without intermediaries. The v4 upgrade plans to expand on the DEX’s coin-swapping capabilities with the introduction of “hooks” and custom liquidity pools. The proposed licensing model for Uniswap v4 is the Business Source License 1.1, which delays competitors from using Uniswap’s codebase to create their own applications. Uniswap Labs is releasing its proposed Uniswap v4 plans to garner public feedback. According to Adams, it could be several months before Uniswap v4 launches to the public.

Step towards increased decentralization

The move to gather community feedback is a step to adopt a more “decentralized” development model, and it is timed just as U.S. regulators are increasing scrutiny of Uniswap’s centralized competitors. The SEC recently filed lawsuits against Coinbase and Binance, two of the leading centralized crypto exchanges. These platforms offer many of the same features as Uniswap, but process trades on traditional computer servers rather than decentralized blockchains. It’s unclear whether (or how) similar enforcement actions could target DEXs like Uniswap, which theoretically lacks a centralized command structure or operating entity. However, the SEC previously signaled its intention to increase oversight of the DeFi ecosystem. Notably, assets deemed securities by the SEC in its recent CEX lawsuits can currently be traded on Uniswap, and the platform was the subject of a 2021 SEC probe according to a Wall Street Journal report.