Uniswap v4 Introduces Dynamic Fees for Stablecoin Swaps

Uniswap Labs has introduced StablePair Hook, a new feature that calculates liquidity provider fees based on price distance and trading direction for stablecoin swaps on Uniswap.

The hook is live on Ethereum mainnet with two pools: USDC/USDT and USDC/USDG. These pools use a reference rate of 1:1, measuring how far the pool price has moved from this rate and adjusting fees accordingly.

StablePair Hook replaces static liquidity provider fees with dynamic ones, giving liquidity providers a larger share of the value generated when traders correct price differences.

The feature is part of Uniswap v4, which allows for customizable pool architecture and control over fees, pricing logic, and access rules. Uniswap Labs has also announced that governance can update fee settings and replace the hook's implementation without requiring liquidity providers to migrate pools.