Do you remember Uniswap v4 Hooks?
It’s the shitcoin narrative that was hyped up in the first half of this year—$SATO and $uPEG.
$UNI has just launched the StablePair Hook, applying v4 Hooks to stablecoin market making.
Actually, as early as June 2023, Uniswap already announced the concept of v4 Hooks, and it went live in January 2025.
But it only became widely known again during the early-year shitcoin run.
Now $UNI is finally turning Hooks into a product—before, most of it was more experimental.
The first batch of StablePair Hooks is for USDC/USDT and USDC/USDG pools.
When the stablecoin price in the pool de-pegs, the StablePair Hook first raises the fee, and then gradually lowers it block by block until arbitrage bots are willing to step in.
It sounds a bit complicated, so let me explain with a simple example:
Suppose the USDC in the pool is worth only $0.99 due to the price deviation. Arbitrage bots then start doing the “buy low, sell high” trade: buy USDC with $0.99, then sell it elsewhere for $1.00. Each token earns the bot $0.01.
So the arbitrage bot only needs to pay a tiny amount of fees; the entire price spread profit goes to the bot.
The StablePair Hook blocks that $0.01 profit right from the start by charging $0.01 in fees, making the bot temporarily unprofitable.
Then it gradually lowers the fee:
- Fee $0.009: bot net profit $0.001;
- Fee $0.006: bot net profit $0.004;
- Fee $0.003: bot net profit $0.007.
Once the bot is willing to accept a lower profit, the trade gets executed.
In the end, of the profit that initially would have gone entirely to the bot, a portion is returned to the pool.
I’m personally looking forward to what new things Hooks might enable. Whether it’s
$SATO and $uPEG, or this round’s StablePair, they’re all refreshingly novel.
$UNI is worth keeping an eye on.
It’s the shitcoin narrative that was hyped up in the first half of this year—$SATO and $uPEG.
$UNI has just launched the StablePair Hook, applying v4 Hooks to stablecoin market making.
Actually, as early as June 2023, Uniswap already announced the concept of v4 Hooks, and it went live in January 2025.
But it only became widely known again during the early-year shitcoin run.
Now $UNI is finally turning Hooks into a product—before, most of it was more experimental.
The first batch of StablePair Hooks is for USDC/USDT and USDC/USDG pools.
When the stablecoin price in the pool de-pegs, the StablePair Hook first raises the fee, and then gradually lowers it block by block until arbitrage bots are willing to step in.
It sounds a bit complicated, so let me explain with a simple example:
Suppose the USDC in the pool is worth only $0.99 due to the price deviation. Arbitrage bots then start doing the “buy low, sell high” trade: buy USDC with $0.99, then sell it elsewhere for $1.00. Each token earns the bot $0.01.
So the arbitrage bot only needs to pay a tiny amount of fees; the entire price spread profit goes to the bot.
The StablePair Hook blocks that $0.01 profit right from the start by charging $0.01 in fees, making the bot temporarily unprofitable.
Then it gradually lowers the fee:
- Fee $0.009: bot net profit $0.001;
- Fee $0.006: bot net profit $0.004;
- Fee $0.003: bot net profit $0.007.
Once the bot is willing to accept a lower profit, the trade gets executed.
In the end, of the profit that initially would have gone entirely to the bot, a portion is returned to the pool.
I’m personally looking forward to what new things Hooks might enable. Whether it’s
$SATO and $uPEG, or this round’s StablePair, they’re all refreshingly novel.
$UNI is worth keeping an eye on.