Uniswap launches StablePair Hook to boost LP returns

Uniswap Labs has launched StablePair Hook, a custom hook built on Uniswap v4 that is designed to maximize the share of trading revenue captured by liquidity providers in stablecoin pairs, The Block reported. The feature targets swaps between stablecoin pairs such as USDC/USDT and USDC/USDG, which account for the largest share of on-chain trading volume. While those trades typically occur near a one-to-one peg, arbitrage bots and traders have generally captured profits when prices drift slightly and then move back toward parity. StablePair Hook applies dynamic fees instead of fixed fees to shift more of that revenue to LPs. The feature was first deployed to Ethereum mainnet pools for the USDC/USDG and USDC/USDT pairs.