Uniswap Labs launches 'StablePair Hook' designed specifically for stablecoin trading pairs

BlockBeats news, September 10: Uniswap Labs has launched the "StablePair Hook," a new Uniswap v4 hook designed specifically for stablecoin trading pairs such as USDC/USDT and USDC/USDG. The StablePair Hook uses dynamic fees instead of fixed fees, which vary based on the deviation of the pool price from its reference price. When the price is close to the reference price, the mechanism adjusts the fee for each transaction to maintain a fixed spread between the buy and sell prices.

Uniswap Labs stated that if the price moves outside this range, transactions that push the price further away from the range incur no fees, as they already provide a favorable price to the pool. Transactions that bring the price back toward the reference price use a Dutch auction. Fees start high and decrease with each block's transaction until a trader accepts them. This allows liquidity providers to gain more from price reversions.

The first StablePair Hook pools will launch on Ethereum with trading pairs USDC/USDG and USDC/USDT. Uniswap Labs stated that in the second quarter, stablecoin-to-stablecoin swap volume on the Uniswap platform reached $43.4 billion, exceeding the combined total of the second and third-ranked on-chain trading platforms.