PowerPerp

How it works

Providing to a constant-product pool is a position, and almost nobody picks it deliberately. Holding `x*y = k` against a price move gives a payoff proportional to the square root of the price, always, with no way to ask for more or less. A provider who is bullish and wants most of the upside, and a provider who wants to sit closer to stable, are handed the identical exposure and told it is a fee opportunity.

The generalisation has been known since Balancer: hold the weighted geometric mean constant, x^w * y^(1-w) = k and the position's value moves with `price^(1-w)`. 5` that is the square root every constant-product pool gives. 8` the pool holds mostly currency0 and the provider keeps most of its move.

2` the pool is mostly currency1 and the provider is nearly flat to currency0. One parameter, and the provider's exposure is something they chose. The swap maths follows from the invariant.

18 fixed point. The exponent is a real number, not an integer, so this needs genuine `pow`; it uses PRB Math rather than an approximation, because a curve that is subtly wrong in the tail is a curve that pays somebody to find the tail. The reason this is worth having on v4 specifically: v4 pools are concentrated-liquidity pools, and concentration and weighting are different tools.

Concentration says where you are willing to quote. Weighting says what exposure you want while you quote. Nothing in v4 offers the second, and a hook that replaces the curve is the only place it can live.

Using it

Uniswap v4 removed hookData from initialize, so per-pool parameters arrive out of band. Fix them for a pool key whose pool does not exist yet, then initialize. Nobody can change them afterwards, including you.

poolManager.initialize(key, startingSqrtPriceX96);

Parameters

This hook takes no per-pool configuration.

From TypeScript

npm i @hookforge/sdk

import {getHook, hookAddress, poolKeyFor} from "@hookforge/sdk";

const hook = getHook("power-perp");
const key  = poolKeyFor({
  hook: hookAddress("power-perp", 8453),   // Base
  currencyA: USDC, currencyB: WETH,
  tickSpacing: 60,
});

What it reverts with

The callbacks it claims

Uniswap v4 reads a hook's permissions from the low fourteen bits of its own address, which is why deploying one means mining a CREATE2 salt. This hook claims 5, so every deployment of it has an address ending in 0x2a88.

• beforeInitialize
• afterInitialize
• beforeAddLiquidity
• afterAddLiquidity
• beforeRemoveLiquidity
• afterRemoveLiquidity
• beforeSwap
• afterSwap
• beforeDonate
• afterDonate
• beforeSwapReturnsDelta
• afterSwapReturnsDelta
• afterAddLiquidityReturnsDelta
• afterRemoveLiquidityReturnsDelta

It says what it is, on-chain

Nothing about a hook's address tells an indexer, a wallet, a router or an agent what the pool does, which is why hook discovery today is a curated list. This hook answers for itself, in one eth_call, with no registry in the loop.

cast call $HOOK "hookName()(string)"    # PowerPerp
cast call $HOOK "specURI()(string)"     # https://power-perp.pages.dev/hook.json
cast call $HOOK "hookTags()(string[])"  # curve, custom-curve, weighted, lp-economics, exposure

Build, test and deploy

git clone --recurse-submodules https://github.com/nirholas/power-perp
cd power-perp
forge build && forge test

# Dry run: mines the salt, prints the address, sends nothing.
forge script script/Deploy.s.sol --rpc-url $RPC_URL

# For real.
forge script script/Deploy.s.sol --rpc-url $RPC_URL --broadcast --verify

Try it

This is the hook running, not a picture of it. Connect a wallet on a chain it is deployed to, or bring the whole stack up locally in one command and use it with no funds and no wallet risk at all.

git clone --recurse-submodules https://github.com/nirholas/power-perp
cd power-perp

anvil &
forge script script/DeployLocal.s.sol --rpc-url http://127.0.0.1:8545 --broadcast \
  --private-key 0xac0974bec39a17e36ba4a6b4d238ff944bacb478cbed5efcae784d7bf4f2ff80

node web/build.mjs && npx serve web/dist