Uniswap Labs, the team behind the decentralized exchange protocol, has launched "StablePair Hook," a new Uniswap v4 hook designed for stablecoin trading pairs such as USDC/USDT and USDC/USDG.
The launch targets one of the largest categories of onchain trading. Stablecoin-to-stablecoin swaps on Uniswap reached $43.4 billion in the second quarter, more than the next three onchain venues combined, Uniswap Labs said Thursday.
Stablecoin pairs usually trade at a fixed rate, such as 1:1 for two dollar-pegged tokens. If the price moves away from that level, traders or bots can profit by bringing it back to parity. Uniswap Labs said StablePair Hook lets liquidity providers keep more of that profit.
"StablePair Hook gives traders consistent, predictable quotes on every swap, and LPs a bigger share of the value they create," Uniswap Labs said.
How StablePair Hook works
