Messari: Uniswap V4, the moment for the platform of crypto applications

Messari: Uniswap V4 is a pivotal moment for the cryptocurrency application platform.

Platforms have led historical technology returns, such as Social, Spotify, Airbnb, etc., all of which allow other businesses (services or IPs) to deploy code on them, from which the platform takes a cut, a killer business model that is difficult to stifle due to network effects. Messari researcher Saypien believes that Uniswap V4 is the moment for the platformization of crypto applications.

So far, app protocols have been largely independent apps where users go to the app, perform actions, and finish, which is bad business because you have to win that customer every time. Open source will create a moat, but apps still need LPs that provide the most valuable assets (bad strategy). Using the Hook model makes Uniswap a platform where other applications deploy custom logic through hook contracts. Hook contracts earn fees like any application. The Uniswap governance committee can reduce withdrawal fees, which is a platform business. V4 brings huge benefits: 1) shifting revenue burden to hooked apps rather than charging LPs directly; 2) responsibility for feasible end consumer apps is now borne by the apps built on top, uni only does the trimming; 3) defensive business. From a valuation perspective, its reasonable large app protocol and Uni V4-like platform models are starting to merge with emerging chain ecosystems where execution environments (L2, L1, etc.) are commoditized, platform protocols have similar version models but with better defenses.


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