The "hook" of Uniswap V4 has been launched for a long time. What is its real purpose?

Hook "Hook" was born in Uniswap, surpassing Uniswap.

Written by: 0xTodd

I've saved some money recently on Uniswap V4, so I've carefully studied Uni's hooks. Many people actually told me privately that after Uni launched V4, they did not feel the stunning feeling when V3 was launched. The main reason is that the concept of "hook" itself is too abstract and you have to take the blame directly.

Instead of being translated as a hook, Hook is not translated as a plug-in in my personal opinion. The hook itself adds some functions to the pool beyond the Uni itself. Its document emphasizes in a lot of time when hooks can be called. In fact, most people don’t care. It’s better to talk about what hooks can do.

【Example of the use of hooks】

• For example, it allows you to build a pool, such as ETH-USDT, which is only available for certain specific addresses;
• Or, it can allow your pool to charge more fees when it is busy and less fees when it is free;
• Or, it can even allow your pool to avoid using the X*Y=K curve (PS: I guess it was stimulated by Curve at that time).

All in all, you can freely develop a variety of features you need, and Uni official may never launch.

It's a bit like the creative workshop on Steam, which is a feeling that the official no longer does, allowing others to create freely.

Another change is that in the past, there were only two profitable ecological niches on Uni, LP and traders, and the two were taking each other's pockets. There are hooks after V4, which actually makes some script kids profitable.

You write a hook, and others can pay to use your hook when building a pool (sell.. hooks?). Each pool can use 1 hook plug-in, but 1 set of hook plug-ins can subscribe to countless pools, with a relatively low marginal cost. There is a website called Hook Rank that contains hundreds of hooks, and you can see how much money you have made in various hooks. Flaunch, one of the most commonly used hooks, I think the developers have earned more than 1 million US dollars.

What is it for? Using its hook allows you to use any proportion of the handling fee of the pool when creating a pool for meme coins, for example, 80% is pointed to your wallet, and then 20% is used for repurchase.

Fortunately, Trump's son didn't know that there was this function when he issued $Trump, otherwise he wouldn't point all his expenses to future world finance?

In addition, as the saying goes, only competitors understand you the best. Pancake also decisively introduced hooks later, but it is not called V4, but Pancake infinity. Of course, this is another story to talk about when you have time. In short, the hook is quite interesting, enough to be named V4.