The V4 upgrade introduces "hooks," customizable plugins that allow developers to implement custom logic for trading pairs, enabling features such as dynamic fee adjustments and automated liquidity management.

Quotes that support claims

The upgraded DEX introduces “hooks,” plugins that let developers create custom logic for cryptocurrency trading pairs.

Uniswap v4’s hooks include tools for dynamically adjusting swap fees, lending unused liquidity for added yield, automatically hedging against impermanent loss and protecting against maximum extractable value (MEV) strategies, such as sandwich attacks.