Hook-Tuah
Swap on that thang
The problem Hook-Tuah solves
HookTuah addresses the drawbacks of traditional Uniswap pools, which require LPs to supply equal values of both tokens in a pair. This dual-sided requirement is a friction for users who only have one asset and exposes LPs to impermanent loss when prices diverge. Additionally, liquidity often becomes inefficiently distributed, leading to higher slippage and reduced returns.
By enabling single-sided liquidity provision, HookTuah allows anyone to participate as an LP using just one token, lowering the entry barrier. The contract acts as a counterparty, providing the other token as needed. Furthermore, it implements Just-In-Time (JIT) rebalancing, which automatically adjusts liquidity positions based on price movement, keeping liquidity in the most active ranges and reducing impermanent loss. This results in a more accessible, efficient, and user-friendly liquidity provisioning experience.
Challenges I ran into
Accurate Accounting:
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.
Integration with Uniswap v4:
Adapting the hook to work seamlessly with Uniswap v4’s pool manager and callback system required a deep understanding of the unidwap math.
Gas Efficiency:
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)
DeFi
Technologies used
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