Dynamic Market-Making Fee Strategy: Uniswap v4’s VolatilePair Hook has launched on Ethereum mainnet, debuting with the ETH/USDC trading pair. It sets separate fee rates for buying and selling ETH, recalculating them with every swap. The greater the volatility, the higher the sell-side fee, allowing LPs to retain more fee value.
Price comparison: ETH at 2418, down 3.2% over 24 hours. Under one-sided selling pressure, the sell-side fee rises, so market makers earn a wider fee spread even in a falling market. UNI at 7.15, down 5.5% over 24 hours. Despite the price pullback, the protocol’s ability to capture fees is strengthening. Tracking whether the ETH/USDC buy-sell fee spread widens with volatility is key to judging whether LP capital will stay. #ETH #UNI
Price comparison: ETH at 2418, down 3.2% over 24 hours. Under one-sided selling pressure, the sell-side fee rises, so market makers earn a wider fee spread even in a falling market. UNI at 7.15, down 5.5% over 24 hours. Despite the price pullback, the protocol’s ability to capture fees is strengthening. Tracking whether the ETH/USDC buy-sell fee spread widens with volatility is key to judging whether LP capital will stay. #ETH #UNI