Yesterday, we were in the world of V3 AMMs. Uniswap’s V3 launched on May 5, 2021. PancakeSwap’s V3 launched on April 3, 2023. And Sushi’s V3 launched on May 4, 2023.

These AMM V3s introduced several significant features and improvements over their V2 predecessors. These include concentrated liquidity, which gives (LPs) granular control over what price ranges their capital is allocated to. Other features include capital efficiency, range orders, flexible fees, advanced oracles, non-fungible liquidity, and deployment on both L1 and L2 networks.

Today, the world moves to V4 AMMs with Henjin V4. The difference between a V3 and a V4 AMM can be summarised with the following new features : Hooks & custom pools, dynamic fees and on-chain limit orders (powered by hooks), improved architecture and gas savings, and more.