Pro
Hooking into the Future: A Uniswap Valuation
Key Insights
- We project hooks to account for 60% of Uniswap's 2028 FDV in our base case. However, it's important to note that a substantial portion of this anticipated growth seems to be already factored into the current token valuation, potentially limiting upside.
- V4 transforms Uniswap from a spot trading application into a liquidity platform, opening the door to a potential new revenue model by taxing hooks applications instead of traditional swaps.
- Hooks introduce the capability for Uniswap to venture into new markets, particularly capturing volumes of tokenized assets and perpetual swaps for a broader range of assets.
- Uniswap V4 cements its status as the premier EVM DEX, poised to expand its market share in EVM DEX volumes significantly.
Revisiting Uniswap V4
In June 2023, Uniswap unveiled its vision for Uniswap V4, marked by adding hooks and implementing singleton. Here's a concise overview of the changes, with a more detailed analysis available in our initial reaction piece.
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Kinji formerly covered crypto at Morgan Stanley. His primary interests are DeFi, Ponzi's and unstable stablecoins.
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