that it will be investing in Hooks on top of Uniswap v4. For context, hooks are contracts that execute at different stages of a pool action’s lifecycle in Uniswap v4.
Uniswap liquidity pools go through various stages during their lifecycle, involving actions such as pool creation with a default fee tier, liquidity adjustments, and token swapping. In Uniswap v3, these events are tightly linked and follow a strict sequence. To enable more flexibility in Uniswap v4 and allow customizable liquidity, hooks were introduced. These hooks serve as plugins, empowering pool deployers to incorporate designated actions at key points in the pool’s lifecycle. They can be utilized before or after a swap, or before or after an LP position is modified.Here’s a 🧵 of some of the cool ones we’ve seen since announcing v4 😎These hooks will bring new functionalities to the protocol.
Furthermore, they are considering allowing liquidity to be deposited outside the usual price range into lending protocols. These hooks will give developers more customization options and flexibility, enabling them to create unique AMM pools that integrate seamlessly with Uniswap’s smart contracts.Despite these updates, the activity on the Uniswap protocol had started to decline. This was indicated by the falling TVL of Uniswap, which decreased by 6.4% over the last month.