Uniswap Labs Unveils Dynamic-Fee Mechanism for Stable Pairs

Uniswap Labs has launched StablePair Hook, a dynamic-fee hook designed for stable pairs on the Uniswap Protocol. This new feature is live on Ethereum's mainnet with two pools: USDC/USDG and USDC/USDT.

Stable pairs are among the most actively traded markets in DeFi, with $43.4 billion worth of stablecoin-to-stablecoin swaps recorded on Uniswap Protocol in Q2 2026 alone.

The dynamic fee mechanism replaces traditional static fees with a system that adjusts based on how far the pool's price has drifted from its true rate or reference price. Within a tight band around the rate, the fee adjusts under every swap to quote a fixed bid/ask spread.

Once the price drifts outside this band, swaps that push it further off pay no fee and instead hand the pool a good price to begin with. Swaps correcting it from outside the band go through a Dutch auction, where the fee starts high but drops each block until someone takes it, allowing liquidity providers (LPs) to keep the difference.

The StablePair Hook is designed to evolve over time and with usage, with pool parameters and fee logic upgradeable through Uniswap Governance without requiring pools to migrate.