Uniswap Hooks Fail on Trust, Leaving Users Vulnerable
Uniswap's v4 hooks were designed to increase scalability by allowing developers to deploy custom logic on AMMs. However, analysis of over 84,000 hooks across six blockchains reveals that only 19.4% are secure, with more than half identified as malicious.
The malicious hooks advertise attractive 'best prices' during quoting but result in users receiving up to 50% less upon settlement. This problem affects not just Uniswap, but the entire DeFi ecosystem, where permissionless liquidity does not equate to trustworthy liquidity.
0x has observed a dramatic increase in malicious Uniswap v4 hooks over the past few weeks, with many quoting one price during the request phase but settling at a different price. This technique allows bad actors to deceive aggregators, wallets, and trading applications, stealing funds from users.