Uniswap v4 Hooks Changed Everything

Uniswap v4 hooks are more significant than most people realize. You can now inject custom logic before swaps, after swaps, on liquidity changes. The DEX became a platform.

The creativity explosion was immediate. Dynamic fees that adjust to volatility. TWAMM for large orders. On-chain limit orders. Built-in MEV protection. Every idea people wished DEXs had can now be implemented as a hook.

Custom hooks are surprisingly accessible. Custom fee tiers for specific tokens. Automatic rebalancing when prices hit certain levels. It's essentially a programmable market maker.

The composability with other DeFi primitives is where it gets wild. Hooks that interact with lending protocols. Hooks that route through aggregators. Hooks that integrate oracles for complex pricing. The design space is massive.

Gas efficiency improved too with singleton architecture. One contract holds all pools. No more deploying new contracts for each pair. The savings compound across the ecosystem.

The risk is complexity. Bad hooks can drain pools or create vulnerabilities. Auditing hooks becomes critical. We'll see some expensive lessons learned before best practices solidify.