TL;DR
- Uniswap Labs launches a $2.35 million security audit competition for its new v4 protocol, the largest prize pool in DeFi history.
- The competition aims to fund independent audits of the smart contracts and Universal Router system of the v4 protocol.
- Innovations will include “hooks” for customizing liquidity pools and consolidating all pools into a single contract, reducing transaction costs and fees for users.
Uniswap Labs, the main company behind the decentralized exchange of the same name, has announced the launch of a security audit competition with an impressive prize of $2.35 million for its upcoming protocol, known as v4.
The prize represents the largest fund for a security competition in the decentralized finance (DeFi) sector to date. The competition is designed to enhance the security of the new protocol, which will introduce several innovations to the platform.
We’re teaming up with @UniswapFND and @cantinaxyz for the largest security competition in DeFi history
$2.35M is up for grabs to help make sure v4 is the most audited code ever deployed onchain
Competition starts September 4th ⤵️ pic.twitter.com/KLHNd5wBnF
— Uniswap Labs 🦄 (@Uniswap) August 15, 2024
The purpose of the contest is to fund independent audits of the Uniswap v4 smart contracts and its Universal Router system, a novel feature that will allow swaps between ERC-20 tokens and non-fungible tokens (NFTs).
The organizers argue that audits are essential in the crypto industry, as once smart contracts are deployed, they cannot be modified, and any vulnerability could be exploited by attackers.
What Innovations Will Uniswap Present?
Uniswap v4 will bring several significant changes. One of the main innovations is the introduction of “hooks” or smart contract plugins that will allow greater customization in liquidity pools. These customizations include the ability to set dynamic fees, on-chain limit orders, and specific oracles for various applications. The changes are designed to provide users and liquidity providers with an enhanced and more flexible experience.
Another important improvement in the update is the consolidation of all liquidity pools into a single contract, aimed at reducing transaction costs associated with creating new pools and executing trades. This new approach will also lower fees for users and liquidity providers, improving the overall efficiency of the platform.
Despite the expectations, the launch of Uniswap v4 has sparked some controversy. Similar to the previous version, v4 will be released under a four-year Business Source License, which has been criticized by some community members for being a violation of the open-source ethos that characterizes many crypto technologies.
The competition will start on September 4 and run until the end of the month. During this period, anyone can submit vulnerabilities in the protocol’s code. Rewards will be allocated based on the severity of the discovered bugs and the quality of the documentation provided.
