Uniswap Labs has released a draft of the code for Uniswap V4, the upcoming version of the largest decentralized cryptocurrency exchange. The new code introduces "hooks" or plugins that allow developers to create custom liquidity pools with various innovative features. These hooks enable the creation of on-chain limit orders, automatic deposits to lending protocols, and auto-compounded liquidity provider fees, among other functionalities. Uniswap intends to gather feedback from the community before deploying V4, while previous versions will remain available. The introduction of hooks is expected to accelerate the development of automated market maker exchanges and promote faster innovation within the DeFi ecosystem. Decentralized exchanges have experienced a significant increase in user activity, with a 444% surge in volume following regulatory actions against centralized competitors like Binance and Coinbase.