Uniswap Labs has introduced StablePair Hook, a new tool for Uniswap v4 built for stablecoin pairs such as USDC/USDT and USDC/USDG, according to The Block. The company said the hook is designed to give traders more consistent and predictable quotes while allowing liquidity providers to keep more of the value they generate. Uniswap also pointed to trading activity on the platform, saying stablecoin-to-stablecoin swaps on the protocol reached $43.4 billion in the second quarter, more than the combined total of the other three largest onchain trading venues. The new hook replaces fixed fees with a dynamic fee model that changes based on how far a pool price moves from a reference price. Near the reference price, it adjusts per-swap fees to keep spreads fixed. When prices move outside the reference range, trades that push the price farther away pay no fee, while trades that bring the price back use a Dutch auction model in which fees decline block by block until a trader takes the trade. The first StablePair Hook pools will go live on Ethereum for USDC/USDG and USDC/USDT.
Uniswap Labs has launched StablePair Hook, a new Uniswap v4 tool built for stablecoin pairs including USDC/USDT and USDC/USDG, according to The Block.
Uniswap Labs said the hook is meant to give traders consistent, predictable quotes while helping liquidity providers keep more of the value they create. The company also cited platform data showing that stablecoin-to-stablecoin swap volume on Uniswap reached $43.4 billion in the second quarter, exceeding the combined total of the other three largest onchain trading venues.
Dynamic fees replace fixed pricing
StablePair Hook uses a dynamic fee model instead of a fixed fee. Fees change depending on how far the pool price deviates from a reference price.
When the price stays close to the reference price, the hook adjusts the fee on each trade to maintain a fixed bid-ask spread. When the price moves outside the reference range, trades that push the price farther away from the reference pay no fee. Trades that bring the price back toward the reference use a Dutch auction mechanism, with fees stepping down block by block until a trader accepts the trade.
Uniswap Labs said that structure allows liquidity providers to retain more value when prices revert.
First pools to launch on Ethereum
The first StablePair Hook pools will go live on Ethereum and will support the USDC/USDG and USDC/USDT pairs.
Uniswap Labs said the hook can be upgraded through Uniswap governance, and the fee system and other parameters can be adjusted without requiring liquidity to migrate.
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