HookTuah is an innovative Uniswap V4 hook that enables single-sided liquidity provision with Just-In-Time (JIT) rebalancing, designed to make liquidity provision more accessible and capital-efficient for DeFi users. Traditionally, providing liquidity on automated market makers (AMMs) like Uniswap requires users to supply both tokens of a trading pair in precise ratios. This can be a barrier for users who only hold one asset, and exposes them to impermanent loss and inefficient capital usage.
HookTuah addresses this by allowing users to deposit just one token (either Token0 or Token1) into a Uniswap V4 pool. The hook acts as a smart counterparty, automatically rebalancing and providing the other side of the pair as needed. During swaps, HookTuah can perform JIT rebalancing, dynamically adjusting its position to reduce impermanent loss and improve liquidity efficiency. This approach lowers the entry barrier for liquidity providers, enables more flexible capital deployment, and enhances overall pool liquidity.
Ensuring accurate tracking of user balances, net deltas, and hook-owned liquidity required careful design and extensive testing. Also taking care of edge cases, such as simultaneous deposits/withdrawals and rapid price changes, were handled by implementing robust internal accounting.
Adapting the hook to work seamlessly with Uniswap v4’s pool manager and callback system required a deep understanding of the unidwap math.
Maintaining gas efficiency while providing advanced features like JIT rebalancing and single-sided provision was challenging. Optimizations included minimizing state writes, using efficient data structures, and leveraging Solidity libraries.
Tracks Applied (1)
Technologies used
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