Overview
Uniswap V4 on Arbitrum is a decentralized exchange running on the Arbitrum network. It launched with the V4 upgrade and lets users trade directly through smart contracts. By mid-2025, its daily trading volume ranges from 45 to 53 million USD, covering dozens of trading pairs with moderate liquidity.
Advanced Features and What’s New
V4 introduces hooks that let developers add custom logic, dynamic fees, MEV protection, and automated yield strategies. The singleton architecture lowers gas costs for pool creation and multi-pool trades. Native ETH support removes the need to wrap ETH, saving both time and fees. Liquidity providers gain flexible fee tiers and better capital efficiency with pools designed for pro strategies.
Trading Volume and Liquidity
On Arbitrum, daily trading volume stays between 45 and 53 million USD. ETH/USDC is the most active pair, taking a large share of swaps. Around 74–80 coins trade across 160–180 pairs. Despite activity, this deployment holds under 1 percent of the total DEX market share. Peak days see over 50,000 swaps.
Security and Decentralization
Uniswap V4 is fully non-custodial and open source. Users control their funds, with all trades executed on-chain. Public audits and a community security challenge strengthen trust, adding to a long history of safe operations across trillions in processed trades.
Reputation and Ecosystem
Uniswap remains a leading DeFi protocol. The Arbitrum version is still scaling, while the broader Uniswap ecosystem holds billions in TVL and hundreds of millions in daily volume. Governance through UNI tokens continues, though it does not directly manage pool logic in V4.
Pros and Cons
- Pros: Fully decentralized with wallet control; Low gas use and high efficiency; Customizable pools; Wide token support; Strong security and audits.
- Cons: Liquidity and volume lower than Ethereum V4; Less beginner-friendly; No fiat options; Liquidity depth varies by pair.
Who Should Use Uniswap V4 on Arbitrum
The exchange fits DeFi users, liquidity providers, and developers who want flexibility and low-cost swaps. It works best for those familiar with wallets and decentralized trading. Casual users needing fiat or centralized tools may find it too complex.
Final Thoughts
Uniswap V4 on Arbitrum shows where decentralized trading is heading. It is efficient, secure, and customizable, but still smaller than its Ethereum counterpart. For active DeFi traders on Arbitrum, it offers powerful tools and a forward-looking design.