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Uniswap launches StablePair Hook for stablecoin liquidity on v4

Uniswap said stablecoin-to-stablecoin swaps on its platform totaled $43.4 billion in Q2, and the new hook is aimed at letting liquidity providers keep more of the value from trades that move prices back toward parity.

Reported · Written up by our desk · Market Structure

Uniswap Labs has launched StablePair Hook, a Uniswap v4 tool designed to help liquidity providers capture more value from stablecoin trading pairs such as USDC/USDT and USDC/USDG, the company said.

The hook uses a dynamic fee rather than a fixed fee, adjusting charges based on how far a pool’s price moves from a reference price. Uniswap Labs said when pool prices stay close to the reference level, the system aims to maintain a fixed spread between buying and selling prices, while trades that push prices further away can pay no fee.

If prices move outside the defined range, Uniswap said trades that bring the price back toward the reference price are priced through a Dutch auction, with a fee that starts high and decreases each block until a trader accepts it.

Uniswap Labs said the first StablePair Hook pools are launching on Ethereum for USDC/USDG and USDC/USDT, and the hook can be upgraded via Uniswap governance so its fee system and other parameters can change without relocating liquidity.

Latest closeEthereum $2,461.76 ▼0.2%

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