Uniswap Unveils $2.5M Security Fund For v4 Upgrade Amid Most UNI Coin Holdings In Loss

• Uniswap has launched a $2.35 million prize fund for researchers to audit its upcoming v4 codebase.
• Uniswap v4 will introduce several new features, including on-chain limit orders and flash accounting.
• The price of UNI may have bottomed out, with 77% of the coins being held at a loss.

Uniswap (UNI) fell more than 4% on Thursday after launching a $2.35 million reward fund for researchers to audit its latest v4 codebase.

Uniswap launches v4 audit prize pool

Uniswap Labs has announced that it is launching a $2.35 million prize fund to fund independent reviews of its upcoming Uniswap v4 update. In what it called “the biggest security competition in DeFi history,” Uniswap Labs said it aims to make “v4 the most audited code ever implemented on-chain.”

The event, supported by Uniswap Labs and security firm Cantina, will run from September 4 to 30.

The pioneering AMM decentralized exchange will see new features in the upcoming v4 release, including:

• Customizable hooks that allow chain limit orders, custom oracles and dynamic automated market maker (AMM).
• Reducing gas fees through the singleton contract that consolidates all liquidity funds into a single smart contract.
• Flash accounting for combining multiple actions into one transaction.
• Native ETH support unlike WETH

Despite the newer features in v4, Uniswap faced criticism over its plans to release the upgrade under the Business Source 1.1 License, which restricts commercial use of the codebase for up to four years. Many see this as a departure from the open-source ethos of web3.

IntoTheBlock Global In/Out of the Money, which measures the percentage of coins or addresses in profit, shows that only 22% of UNI coins are profitable. 77% of the coins are out of the money, with the biggest accumulation area around the $9 to $15.7 range.

UNI Global In/Out of the Money

When a large percentage of coins are held at a loss, it often indicates that prices could be falling and could see a reversal.

Meanwhile, the UNI is in a downtrend on the 4-hour chart after the August 5 market crash that hit record price lows last seen in November 2023. The 200-day moving average has served as resistance since July and could hold out once more. trying to get up.

4 hour UNI/USDT chart

On the downside, UNI could see a massive correction if it breaches the $4,703 support formed on August 5.