Uniswap Labs Launches "StablePair Hook" Designed for Stablecoin Trading Pairs

BlockBeats News, September 10 — Uniswap Labs has introduced "StablePair Hook," a new Uniswap v4 hook specifically designed for stablecoin trading pairs such as USDC/USDT and USDC/USDG. StablePair Hook utilizes dynamic fees instead of fixed fees, with the fee varying 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 buy and sell prices. Uniswap Labs stated that if the price moves beyond the range, transactions that push the price further away from the range will not incur any fees, as they already provide a favorable price for the pool. Transactions that pull the price back to the reference price will adopt a Dutch auction mechanism. Initially, the fees are high and decrease with each block until a trader accepts the price. This allows liquidity providers to earn more from price corrections. The first batch of StablePair Hook pools will be launched on Ethereum, with trading pairs USDC/USDG and USDC/USDT. Uniswap Labs noted that in the second quarter, the trading volume of stablecoin-to-stablecoin swaps on the Uniswap platform reached $43.4 billion, surpassing the combined total of the second and third-ranked on-chain trading platforms.