Uniswap adds external liquidity to v4 on three chains

Uniswap Labs launched Aggregator Hooks on Ethereum, Base and Robinhood Chain on Oct. 22, letting v4 route swaps through external liquidity while fees from those trades contribute to UNI burns, according to its launch announcement.

The feature is available in the Uniswap Web App and API. Uniswap says seven external sources are connected at launch and together cover more than 90% of decentralized exchange activity on the three chains.

Which outside exchanges are connected?

Fluid, Curve and PancakeSwap are among the sources, The Block reported, citing Uniswap Labs. The launch announcement does not name all seven sources.

How do Aggregator Hooks route a swap?

Each hook wraps an external source so a router can treat it as a Uniswap v4 pool. Uniswap Labs says the router refreshes quotes from connected sources every block, then builds a route using both Uniswap pools and outside liquidity.

The route settles in one transaction, with no new approval required, according to the company. External sources are included automatically in swaps on the web app; API users can also route through the hooks.

How do routed trades affect UNI?

Trades routed through external liquidity pay Uniswap protocol fees, which contribute to UNI burns, the company said. It did not state how much fees or burns the new routes have generated.

Uniswap Labs says more chains and sources are coming, but has not specified a timetable or named the additional venues.

Source material

• launch announcement — blog.uniswap.org
• The Block reported — theblock.co