Uniswap Labs launches StablePair Hook for dynamic stablecoin fees

Uniswap Labs has launched StablePair Hook, a new tool for Uniswap v4 designed to implement dynamic fees for stablecoin trading pools. This mechanism replaces the traditional flat-fee model with fees that adjust based on how far a pool’s price deviates from its expected 1:1 peg and the direction of the trade.

By scaling fees according to price drift, the tool aims to capture more value for liquidity providers (LPs) rather than allowing arbitrageurs to capture the entirety of price corrections. Corrective trades occurring outside a specific price band face fees that decay with each subsequent block until an arbitrageur accepts the trade.

The rollout has begun on the Ethereum mainnet with two specific pools: USDC/USDT and USDC/USDG. The launch follows a period of high activity, with Uniswap Labs reporting that stablecoin-to-stablecoin swaps on the platform reached $43.4 billion in the second quarter.