[Uniswap releases TWAMM mechanism introduction, aimed at reducing price volatility] On October 7, Uniswap released an article to explain its time-weighted average market maker (TWAMM) Hook mechanism. The new feature allows developers to build custom AMM functions on top of Uniswap. It splits large orders into small orders and executes them gradually over a period of time, thereby reducing the impact of price fluctuations. In Uniswap V4, each liquidity pool can insert various Hooks, which run at different stages of the liquidity pool operation. Orders are stored in the TWAMM Hook, and users set the execution period of the order. These two parameters instruct the TWAMM Hook to exchange at the price of each block until the order expires. TWAMM orders are always the first pool operation in the block, which means that they are executed before any exchange or LP (liquidity provider) position adjustment. This protects users from the impact of front-running MEV. Application scenarios of TWAMM Hook include: long-term investors can implement a "fixed investment" strategy by splitting large orders, and DAOs can gradually execute large orders to avoid market price fluctuations.
