Malicious Uniswap v4 Hooks Bait DeFi Traders with Fake Swap Quotes
Liquidity aggregator 0x has detected an alarming increase in malicious Uniswap v4 hooks over recent weeks. These hooks are designed to quote one price and settle at another, often resulting in users receiving significantly less than what was displayed.
In a report analyzing 84,163 hooks across six chains, 0x found that 54.2% were classified as malicious, with up to half of the quoted amount being withheld from users during execution. The company also observed that these malicious routes can deliver up to half less than quoted, making them particularly appealing to traders looking for a good deal.
One example cited by 0x involved a Base hook trading ETH/NVDAc, which collected $143,037 in fees as of September 11. The company emphasized the importance of router scrutiny and vetting of liquidity sources to prevent such malpractices.