A transaction-level, data-engineering perspective A transaction-level, data-engineering perspective When people say “Uniswap V4 is just another AMM version”, that’s only true at the UX level. From a transaction decoding and on-chain data perspective, V4 is a very different beast. If you’ve ever built: a tx decoderan indexera trade analytics pipeline -or a MEV/monitoring system a tx decoder an indexer a trade analytics pipeline -or a MEV/monitoring system You’ll immediately feel the difference. This post explains why decoding Uniswap V4 is fundamentally harder than V2 and V3, and what changes at the data layer. 1. V2 & V3: Decoding by Pattern Recognition 1. V2 & V3: Decoding by Pattern Recognition V2/V3 decoding is almost trivial: One pool = one contract -> Liquidity is the balance of the pool contractSwap logic is fixedKey events:SwapMintBurn One pool = one contract -> Liquidity is the balance of the pool contract Swap logic is fixed Key events: Swap Mint Burn A decoder can:Identify the pool addressParse Swap eventInfer: token0 / token1 from pool contract A decoder can: Identify the pool address Parse Swap event Infer: token0 / token1 from pool contract ➡️ Event-driven, deterministic, stateless 2. Uniswap V4: Everything Breaks 😅 2. Uniswap V4: Everything Breaks 😅 Uniswap V4 introduces a paradigm shift, not an iteration. The biggest change: Pools are no longer contracts. All pools live inside one singleton contract (PoolManager), and everything is keyed by a PoolId. That single design choice cascades into multiple decoding problems. 3. PoolId ≠ Pool Address 3. PoolId ≠ Pool Address In Uniswap V4: poolId is a bytes32Derived from:token0token1feetickSpacinghooks poolId is a bytes32 Derived from: token0 token1 fee tickSpacing hooks Problems for decoders:No on-chain pool address to indexNo ERC-20 balance per poolNo direct contract logs per pool Problems for decoders: No on-chain pool address to index No ERC-20 balance per pool No direct contract logs per pool ➡️ You must detect event pool initialize; save the pool information to your local database before you start decoding any transactions of the pool. must detect event pool initialize; 4. Hooks: Decoding Without Knowing the Rules 4. Hooks: Decoding Without Knowing the Rules Hooks are the real game-changer. A pool can attach arbitrary logic at: beforeSwapafterSwapbeforeModifyPositionafterModifyPosition ... beforeSwap afterSwap beforeModifyPosition afterModifyPosition ... From a decoder’s point of view: Swap behavior is no longer deterministic Swap behavior is no longer deterministic Token flows may:be modifiedbe redirectedbe conditionally executed Token flows may: be modified be redirected be conditionally executed Even worse:Hooks are external contractsThey may emit their own eventsOr emit nothing at all Even worse: Hooks are external contracts They may emit their own events Or emit nothing at all ➡️ You cannot decode V4 swaps correctly by reading PoolManager logs alone. 5. One tx ≠ One Action 5. One tx ≠ One Action - In V2/V3: - In V2/V3: - In V4: - In V4: ➡️ Decoding becomes stateful, not event-local. 6. Event Semantics Are Weaker 6. Event Semantics Are Weaker Another subtle but painful difference: V2/V3 events are semantic V2/V3 events are semantic → “This is a swap, this is mint, this is burn.” V4 logs are often mechanical V4 logs are often mechanical → balance deltas, internal calls, state updates To reconstruct a “swap”, you may need: call tracestorage readshook-specific logictoken balance diffs call trace storage reads hook-specific logic token balance diffs ➡️ You’re rebuilding meaning, not parsing events. 7. Why Generic Decoders Fail on V4 7. Why Generic Decoders Fail on V4 Most existing decoders assume: Most existing decoders assume: pool = contractswap = eventtokens = known upfront pool = contract swap = event tokens = known upfront These assumptions fail in V4. These assumptions fail in V4. A V4-capable decoder must: A V4-capable decoder must: Resolve PoolId → PoolKeyTrack pool state off-chainUnderstand hook execution pathsAggregate multi-step flows into one semantic action Resolve PoolId → PoolKey Track pool state off-chain Understand hook execution paths Aggregate multi-step flows into one semantic action ➡️ This is closer to program analysis than log parsing. 8. Practical Implications for NFRA Teams 8. Practical Implications for NFRA Teams If you’re building: analytics dashboardstax toolsMEV monitorscompliance/forensicscopy-trading systems analytics dashboards tax tools MEV monitors compliance/forensics copy-trading systems Then V4 forces you to rethink: Then V4 forces you to rethink: indexing strategystorage modeldecoding abstractions indexing strategy storage model decoding abstractions “Just listen to events” is no longer enough. Closing Thoughts Closing Thoughts Uniswap V4 isn’t harder because it’s poorly designed. It’s harder because it’s more expressive. That expressiveness moves complexity: from smart contracts to off-chain decoding and interpretation For data engineers and infra builders, V4 is not an upgrade — it’s a new problem class.

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Uniswap V3’s “Collect” Is Correct — and Still Misleading

Why Decoding Uniswap V4 is Harder Than V2 & V3

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