Introducing Hooks in Uniswap V4

Tags: defi, uniswap

Uniswap V4 introduces a new era with Hooks, expanding the capabilities of decentralized finance (DeFi) protocols. Below are some standout hooks that are shaping the Uniswap V4 ecosystem:

---

1. Meridian Hook – Institutional Liquidity for Uniswap

📌 Developer: CollarProtocol

🔹 Key Features:

• Extends repayment time for borrowers with volatile collateral.
• Swaps collateral upfront to mitigate price risk.
• Institutional-grade solution that can 10x liquidity and trading volume on Uniswap.

🔗 Join: bit.ly/collarlaunch

---

2. Bunni Hook – Liquidity Optimization & Adaptive Swaps

📌 Developer: Bunni

🔹 Key Features:

• Rehypothecation: Reuses collateral to enhance capital efficiency.
• Shapeshifting: Automatically adjusts liquidity positions based on market conditions.
• AM-AMM: Advanced automated market-making mechanisms.
• Programmable Liquidity: Maximizes returns from liquidity pools.

---

3. Polaris Hook – Maximizing Yield from Synthetic ETH & Stablecoins

📌 Developer: LumisFi

🔹 Key Features:

• Synthetic ETH vault to hedge impermanent loss.
• Smart hedging strategy allows LPs to earn 3x trading fees.
• Maintains 1x exposure in the ETH-USDC liquidity pool.
• Profitable in ±10% ETH price fluctuations, with weekly yields of up to 2%.

---

4. Likwid Hook – Oracle-Free, Decentralized Margin Trading

📌 Developer: Likwid

🔹 Key Features:

• No Oracles Needed: Uses LP trading pair prices for liquidations, enabling listing of long-tail assets.
• Project-Friendly: Provides on-chain teams with new market value management tools.
• LP Incentives: In addition to trading fees, LPs earn leverage interest & liquidation penalties.
• Anti-MEV Mechanism: Redistributes MEV profits to leverage traders via dynamic fees.

---

5. Cork Hook – Credit Default Swaps (CDS) for Pegged Assets

📌 Developer: CorkProtocol

🔹 Key Features:

• Flash Swaps Mechanism: Enables Depeg Swaps in a single market.
• Expiring Tokens: Adjusts liquidity concentration over time.
• Custom Fee & Curve: Fee decreases as token expiry approaches.
• Uniswap V4 Integration: Supports Flash Swaps & Flash Loans.

🔗 Try it out: app.cork.tech (Launching on mainnet next week!)

---

Which Hooks Stand Out?

Each hook has unique advantages, but Bunni Hook and Likwid Hook seem the most intriguing:

🟢 Bunni Hook – The Shapeshifting Exchange

• Rehypothecation allows multiple uses of the same collateral, maximizing capital efficiency.
• Shapeshifting liquidity is a game-changer, enabling pools to adapt dynamically to market changes.
• If executed well, this could significantly reduce liquidity inefficiencies, something many DeFi platforms struggle with.

🔵 Likwid Hook – Oracle-Free Margin Trading

• Eliminates oracle dependency, making it more transparent & resistant to price manipulation.
• Instead of external price feeds, liquidations are based on LP pair prices, ensuring fairness.
• Completely permissionless margin trading, allowing smaller projects to integrate without gatekeepers.

Each of these hooks serves a unique purpose, but in terms of excitement, Bunni Hook and Likwid Hook stand out the most.

Bunni Hook (Shapeshifting Exchange)

• It enables Rehypothecation, meaning collateral can be reused to generate new liquidity, maximizing capital efficiency without locking assets.
• The Shapeshifting mechanism is quite intriguing, as it dynamically adjusts liquidity based on market conditions.
• If implemented well, it could enhance capital efficiency and reduce liquidity waste, which many DeFi platforms still struggle with.

Likwid Hook (Oracle-Free Margin Trading)

• What makes it interesting is that it operates without an oracle, meaning it doesn’t rely on third parties for price updates.
• Instead, liquidations are based on LP pair prices, making the system more transparent and resistant to price manipulation.
• Additionally, it allows fully permissionless margin trading, enabling smaller projects to integrate without needing approval from major platforms.

Broader Impact on Uniswap V4

From a Uniswap-wide perspective, Meridian Hook could be the most important since it attracts institutional liquidity and expands the market for Uniswap V4.

But if we’re talking about the most innovative and “crazy” hooks, Bunni and Likwid take the crown. 😆

Check out more information about other Uniswap hooks (parameters, TVL, trading volume, etc.) on HookRank:

HookRank.io – The Ultimate Tool to Check Uniswap Hooks

---

Final Thoughts

Uniswap V4 Hooks are unlocking new possibilities in DeFi, from liquidity expansion to profit optimization for LPs and traders. Each hook has its unique strengths, catering to different needs within the crypto market. 🚀