Uniswap V4’s “hook” has been launched for a long time. What is its real use?

Uniswap V4's "hook" functions as a customizable plugin system, allowing developers to add unique features to liquidity pools beyond Uni's native capabilities. Key use cases include:

Restricted Access Pools: Create pools like ETH-USDT that are only accessible to specific addresses
Dynamic Fee Structures: Adjust fees based on pool activity (higher during busy periods, lower when idle)
Custom AMM Curves: Implement alternative trading curves beyond the standard X*Y=K formula

The hook ecosystem enables third-party developers to monetize their creations, with popular hooks like Flaunch earning over $1 million. For example, meme coin creators can use hooks to redirect up to 80% of pool fees to designated wallets. Competitors like PancakeSwap have adopted similar systems (rebranded as "Pancake Infinity"), validating the concept's innovation. This plugin approach transforms Uniswap into a more open platform resembling Steam's creative workshop model.

Hook was born in Uniswap and surpasses Uniswap.

Written by: 0xTodd

I recently saved some money in Uniswap V4, so I studied Uni’s hook carefully. Many people actually told me privately that after Uni launched V4, they didn’t feel the same amazing feeling as when V3 was launched. The main reason is that the concept of “hook” itself is too abstract and should be directly blamed.

In my humble opinion, Hook is better translated as plugin rather than hook. Hook itself is to add some functions beyond Uni itself to the pool. Its documentation repeatedly emphasizes when the hook can be called, but most people don't care. It's better to talk about what the hook can do.

[Examples of hook uses]

For example, it allows you to create a pool, such as ETH-USDT, which can only be used by certain specific addresses;
Alternatively, it can allow your pool to charge more fees when it is busy and less fees when it is idle;
Or, it can even allow your pool to not use the X*Y=K curve (PS: I was probably inspired by Curve at the time).

All in all, you are free to develop all kinds of features that you need, which Uni officials may never launch.

It’s a bit like the creative workshop on Steam, where the official no longer operates it and allows other people to create freely.

Another change is that in the past, there were only two profitable niches on Uni, LP and traders, and the two were each taking advantage of the other. After V4, there are hooks, which actually allow some script kiddies to also have a profitable niche.

You write a hook, and others can pay to use your hook when they build a pool (selling... hooks...?). Each pool can use 1 hook plugin, but 1 set of hook plugins can be subscribed to countless pools, and the marginal cost is quite low. There is a website called Hook Rank that contains hundreds of hooks, and you can see how much money various hooks have made. At present, one of the most commonly used hooks, Flaunch, I think the developer has made more than 1 million US dollars.

What does it do? Using its hook, you can create a pool for meme coins and point any proportion of the pool's handling fee, for example, 80% to your own wallet, and then use 20% for repurchase.

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

In addition, as the saying goes, only your competitors know you best. Later, Pancake decisively introduced the hook, but it was not called V4 but Pancake infinity. Of course, this is another story. In short, the hook is still a very interesting thing, worthy of the name of V4.