Uniswap V4's "hook" has been launched for a long time; what is its real use?

Hook “Hook” was born out of Uniswap, surpassing Uniswap.

Written by: 0xTodd

Recently, I saved some money on Uniswap V4, so I seriously studied the hooks of Uni. Many people have actually told me in private that after Uni launched V4, they did not feel the same sense of amazement as when V3 was released. The main reason is that the concept of “hooks” itself is too abstract and must take the blame directly.

Rather than being directly translated as “hook,” I personally believe it would be better to translate it as “plugin.” A hook itself is meant to add some functionalities beyond what Uni can offer. Its documentation emphasizes at length when the hook can be invoked, but in fact, most people are not interested in that; it would be better to explain what the hook can actually do.

[Examples of the Use of Hooks]

• For example, it allows you to create pools, such as ETH-USDT, that can only be used by certain specific addresses;
• Alternatively, it can allow your pool to collect more fees during busy times and fewer fees during idle times;
• Alternatively, it could even allow your pool to operate without the X*Y=K curve (PS: presumably stimulated by Curve at the time).

In summary, you can freely develop a variety of features that you need, which the Uni team may never release.

It’s somewhat like the Creative Workshop on Steam, where the official support has ceased, allowing others to create freely.

Another change is that in the past, there were only two profitable niches on Uni: LPs and traders, and both were picking each other’s pockets. After V4, there are hooks, which actually allow some script kiddies to have profitable positions as well.

You write a hook that others can pay to use when they build a pool (selling… hooks?). Each pool can use 1 hook plugin, but 1 set of hook plugins can be subscribed to by countless pools, making the marginal cost quite low. There is a website called Hook Rank that has recorded hundreds of hooks, showing how much money various hooks have earned. One of the most commonly used hooks is Flaunch, and I see the developer has already earned over 1 million dollars.

What is it for? With its hook, you can direct the transaction fees of the pool you create for meme coins at any ratio, for example, 80% to your own wallet and 20% for buybacks.

Fortunately, when Trump’s son issued $Trump, he didn’t know about this feature, otherwise he would have directed all expenses towards the future world finance?

In addition, as the saying goes, only competitors know you best, and Pancake also decisively introduced hooks later, but instead of calling it V4 but Pancake infinity, of course, this is another story to talk about when you have time. All in all, hooks are a lot of interesting stuff to call it V4.