Uniswap Dynamically Prices Fees for Two Stable-Pair Pools
Uniswap Labs has launched StablePair Hook, a tool for two stable-pair pools on Ethereum that dynamically sets liquidity-provider fees. The launch covers USDC/USDT and USDC/USDG pools. Unlike fixed-fee stable-pair pools, the new system charges different fees based on the pool's price movement.
The hook configures each pool with a reference rate and a narrow band around it. Liquidity providers are charged a fee from the pool price, its distance from the reference rate, and the direction of the proposed trade. Inside the band, the fee changes to maintain consistent pre-price-impact buy and sell quotes.
Outside the band, corrective trades face a falling fee that decays once per block until someone accepts it. The pool collects the fee charged at execution. Uniswap said stablecoin-to-stablecoin swaps on its protocol totaled $43.4 billion in the second quarter.