Uniswap V3 & V4 Integration

Advancing AMM Technology

Uniswap has set the standard for decentralized exchanges (DEXs) through continuous innovation in automated market maker (AMM) technology. Uniswap V3 introduced concentrated liquidity, while Uniswap V4 enhances flexibility and efficiency with hooks and a singleton contract model.

Uniswap V3: Concentrated Liquidity & Capital Efficiency

Uniswap V3 introduced concentrated liquidity, allowing liquidity providers (LPs) to allocate capital within specific price ranges, increasing capital efficiency and fee earnings.

Key Features:

• Concentrated Liquidity – LPs define custom price ranges, optimizing capital allocation.

• Custom Fee Tiers – Different fee levels based on asset volatility.

• Non-Fungible LP Positions – Positions are represented as NFTs, enabling flexibility but requiring active management.

Uniswap V4: Hooks & Cost Efficiency

Uniswap V4 builds on V3’s foundation, introducing hooks, a singleton contract, and flash accounting, reducing costs and enabling custom AMM behaviors.

Key Innovations:

• Hooks System – Custom smart contracts that execute before, during, or after swaps, allowing for dynamic fees, automated liquidity rebalancing, and advanced order execution.

• Singleton Contract Model – Consolidates all liquidity pools into a single contract, significantly reducing deployment and transaction costs.

• Flash Accounting – Optimizes token transfers, lowering gas fees and improving efficiency.

• Native ETH Support – Eliminates the need for wrapped ETH, simplifying transactions.

Impact on Catex

Catex integrates Uniswap V4 technology to enhance trading efficiency on Polygon. By leveraging hooks, flash accounting, and the singleton model, Catex reduces gas costs, enables advanced liquidity strategies, and improves overall capital efficiency.