Three hidden flaws in Uniswap's StablePair hook drain LP returns
- —StablePair compares pool price to a hook-configured reference, not an external market feed
- —Swaps moving away from the reference pay zero LP fee; corrective swaps pay a decaying fee
- —USDC/USDT pool held about $6.1M TVL and $117.9M in 24-hour volume
- —USDC/USDG pool held about $2.6M TVL and $8.7M in 24-hour volume
Why it matters: If a stablecoin's real value drifts from the reference, LPs absorb inventory losses that fee income does not offset.
Source: CryptoSlate