Uniswap Introduces StablePair Hook for Dynamic Fees on Stablecoin Pools

Uniswap Labs has released StablePair Hook, a new hook for Uniswap v4 that adds dynamic fee logic to stablecoin trading pairs. The first pools using the hook are on Ethereum for USDC/USDT and USDC/USDG.

Why StablePair Hook matters

Stablecoin‑to‑stablecoin swaps on Uniswap generated $43.4 billion in Q2, outpacing the combined volume of the next three on‑chain venues. These pairs typically trade at a 1:1 peg, and price deviations create arbitrage opportunities that benefit traders and liquidity providers (LPs).

How the dynamic fee works

Instead of a fixed fee, StablePair Hook adjusts fees based on the pool’s price relative to a reference price. When the price stays near the reference, the fee is set to keep a constant spread. If the price moves away, trades that push it further incur no fee, as they already improve the pool’s balance. Trades that move the price back toward parity use a Dutch‑auction style fee that starts high and decreases each block until accepted, allowing LPs to capture more of the rebalancing value.

Upgradeability and broader context

The hook’s parameters can be modified through Uniswap governance, meaning fee structures can evolve without migrating liquidity. StablePair Hook follows earlier v4 hooks such as DualPool and Permissioned Pools, and contributes to the growing ecosystem of over 90,000 hooks deployed across 20 chains, which have processed more than $38 billion in swap volume.