Foresight News reports that, according to The Block, Uniswap Labs has launched the “StablePair Hook,” a brand-new Uniswap v4 hook designed specifically for stablecoin trading pairs such as USDC/USDT and USDC/USDG. The StablePair Hook uses dynamic fees rather than fixed fees; the fee amount changes based on how far the pool price deviates from its reference price. When the price approaches the reference price, the mechanism adjusts the fee for each trade to maintain a fixed spread between buy and sell prices.

Uniswap Labs said that if the price goes beyond the specified range, trades that push the price further away from that range will pay no fees, because they already offer the pool a favorable price. Trades that pull the price back toward the reference price use a Dutch auction. The fee starts out relatively high and decreases with each block as trades are executed, until a trader accepts it. This enables liquidity providers to earn more from the price pullback. The first StablePair Hook pools will be deployed on Ethereum, with trading pairs of USDC/USDG and USDC/USDT.

Uniswap Labs said that in the second quarter, stablecoin-to-stablecoin exchange volumes on the Uniswap platform reached $43.4 billion, exceeding the combined total of the second- and third-ranked on-chain trading platforms.