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What is a DEX worth? Not much, when you finally grasp the implications of Uniswap v4 hooks. You know what else is worthless? Lots of tokens after this weekend's market selloff. Thanks, Donald Trump. |
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Liquidations spike: |
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Over the past 24 hours, crypto liquidations surged as the market fretted over the impact of Trump's tariffs. The chart from CoinGlass shows a significant wave of liquidations around 7 pm ET (midnight UTC). Altogether, the data points to upward of $2.3 billion in liquidations. (It might actually be larger.) |
BTC saw $376m in liquidations, but held up relatively well — bouncing at the now-critical $92k level where it found lows on a daily timeframe on Nov. 26, Dec. 30 and Jan. 9. |
This level of correction is well within historical norms in a bull market, and is generally considered healthy. Bitcoin frequently reconnects with major moving averages on high timeframes during bull runs. |
Everything else fared much worse. The TOTAL2 chart of all crypto market cap, excluding BTC and stablecoins, crashed about 30% over the weekend into Monday. Even so, TOTAL2 remains at $1.22 trillion, almost exactly where it was in March 2024. It's currently holding the Dec. 20 spike low. |
It goes without saying that this flush wiped out whatever leverage was left across the board. And with funding rates flipping negative and the Coinbase premium vs. Binance quite positive, this is not yet a time to panic. |
Unless you're bag-holding AI coins since the start of the year. |
— Macauley Peterson |
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Brought to you by: |
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Uniswap V4 is here |
About 20 months after its initial announcement, Uniswap v4 quietly rolled out over the past weekend on 12 chains. |
Uniswap v4 is a big deal for the simple reason that it threatens to turn one of DeFi's most essential primitives — DEXs — into a cheap commodity. |
For the longest time, Uniswap competitors have tried to appeal to users with incrementally innovative and piecemeal features like dynamic fees (Trader Joe), providing out-of-range liquidity into money markets (Balancer), MEV internalization (Skip), etc. |
Uniswap's response: Build whatever DEX you like on v4. |
That's possible thanks to v4's primary innovation of "hooks." Hooks are separate smart contracts "attached" to Uniswap liquidity pools, enabling developers to implement custom DEX logic that triggers based on certain behaviors. |
For example, Uniswap v3 pools are bound by predefined fee tiers. Now, v4 liquidity pool deployers can customize their pool logic with dynamic fee curves that adjust based on variables like volatility. They can even punish LPs with a fee when they withdraw liquidity. |
Liquidity pools could be designed to deposit unused liquidity into Aave to generate a yield for LPs, or implement KYC features like NFT-gating or time-gating (so pools are tradable only within certain hours). |
Devs can even introduce a "fee switch" without having to wait for Uniswap protocol to do so. The possibilities are endless. |
V4 hooks, in effect, let liquidity pool deployers act as their own "DEX." |
For an example of hooks in action, look to Flaunch — a new memecoin launchpad on Base. |
When tokens pre-launch on Flaunch, they can be bought at a fixed price for 30 minutes. After 30 minutes, all remaining tokens are sold and the memecoin is launched on the open market. |
Unlike pump.fun, however, 100% of trading fees are paid to creators and buybacks (the exact ratio depends on the creator). Buybacks take place when tokens collect 0.1 ETH in trading fees. |
Using hooks, Flaunch was able to integrate this custom logic into every Uniswap v4 liquidity pool that a memecoin is launched on (there are already thousands). |
Flaunch has launched 2,135 tokens, generated $75.6 million in v4 trading volumes, and paid back 51 ETH since its inception last Friday. |
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According to HookRank.io, 24 hooks have been deployed, with the overwhelming majority of TVL ($2.3 million) in Flaunch's hook contracts. |
Then there's Bunni DEX. It slaps a "rehypothecation" hook on top of v4 to route LP capital to lending protocols for more profitable LP strategies. There's also Doppler, a liquidity bootstrapping protocol by Whetstone Research that simply builds auctions on top of v4 contracts. |
Another upcoming innovation on v4 hooks is the Angstrom DEX, built by Sorella Labs. Angstrom is implementing a v4 hook that seeks to mitigate MEV leakages to L2 sequencers by protecting LPs against CEX-DEX arbitrageurs (loss-vs.-rebalancing) and traders against MEV attacks. |
Based on this directory, there are about 24 active projects building on v4 hooks. |
With v4, Uniswap is no longer a liquidity pool launchpad. Uniswap has effectively become a spot DEX launchpad. |
— Donovan Choy |
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A balanced Balancer vote |
Balancer and CoW Protocol are considering a token swap meant to align incentives. But with just hours to go in the six-day voting period, the Balancer vote is, well, balanced on a razor's edge. |
The idea is for the two DAOs to deepen their longstanding partnership by exchanging 200,000 BAL for approximately 631,000 COW. This move aims to align incentives as both projects prepare for the next phase of CoWAMM development. |
Balancer has worked closely with CoWSwap since the latter's early days, with Balancer integrating CoWSwap into its main swap UI. The partnership has since evolved, culminating in the launch of CoWAMMs, a novel AMM designed to reduce loss-vs.-rebalancing (LVR). With CoWAMMs reaching over $25 million in TVL and $50+ million in trading volume, further collaboration is expected to refine and expand these mechanisms. |
Originally outlined in previous governance proposals (CIP-45 and BIP-628), the token swap was postponed to ensure a smooth CoWAMM rollout. Now, the initiative seeks to formalize and execute the exchange using a 30-day TWAP pricing model, amounting to ~$539,220 for each token allocation. |
To reinforce mutual commitment, neither party can sell the acquired tokens for two years, though governance and staking participation are permitted. |
A paired discussion post does not elucidate the rationale of the dissenters. Currently, the "yes" camp leads by only a 2% margin. |
— Macauley Peterson |
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Permissionless IV is where the next wave of onchain innovation comes to life. Whether you're coding through a high-energy hackathon, exploring the latest dev tools, or meeting the minds shaping the space — this is where your dream ideas turn into reality. |
Best of all, developers participating in the hackathon attend for free.
Brooklyn in the summer, an over $100k prize pool, and a room full of builders. You in? |
📅 June 22–26 | Brooklyn, NY |
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 | mary @howdymerry |  |
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sometimes i get very sad that i spent the last four years of my life full time in crypto. i read papers from other tech sectors all the time—one friend is working on a soft magnets start up, another stayed up all night with me talking about lithography machines a meta engineer… x.com/i/web/status/1… | | | 3:50 PM • Feb 2, 2025 | | | | | | 3.92K Likes 198 Retweets | 324 Replies |
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|  | THORChain @THORChain | |
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THORChain Community Update
Thank you to the community members, Node Operators, and builders who have remained committed throughout this critical moment for the network. Your dedication and contributions have been invaluable in shaping the path forward and ensuring THORChain's… x.com/i/web/status/1… | | | 5:53 PM • Feb 2, 2025 | | | | | | 954 Likes 180 Retweets | 101 Replies |
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|  | Umbrella @umbrella_uni | |
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Market so bad I just saw a coin migrate from Raydium back to pumpfun 😭📷🙏🙏 | |  | | | 7:48 AM • Feb 3, 2025 | | | | | | 276 Likes 4 Retweets | 5 Replies |
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|  | Ryan Connor | BWR 🟪 @_ryanrconnor | |
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Forced selling and… - SOL (cash flows, reasonable valuation) outperforming ETH (secularly declining cash flows, unreasonable valuation)
- Kamino and Hype holding up (benefit from liquidations, growing)
- HONEY and GOED have barely moved (revenues are uncorrelated to crypto)
-… x.com/i/web/status/1… | | | 12:04 PM • Feb 3, 2025 | | | | | | 54 Likes 3 Retweets | 1 Reply |
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|  | Jake Pahor @jake_pahor | |
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The market's in a frenzy—time to step back and see the big picture. - US Government supports crypto.
- SEC now leans pro-crypto.
- High chance of a Strategic Bitcoin Reserve.
- BlackRock bullish on RWAs and tokenization.
- Many ETFs expected in 2025 (SOL, DOGE, XRP).
- Rate cuts… x.com/i/web/status/1… | | | 7:33 AM • Feb 3, 2025 | | | | | | 26 Likes 6 Retweets | 4 Replies |
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