UHI9 Demo Day: The Yield-Protected AMM

[00:00:09]Hello everyone and welcome. Uh I am so excited to have you joining us for our ninth demo day for the Uniswap hook incubator. And today um we will be uh showing off some of the projects that have been created across the past uh nine weeks and specifically through the 3-week long hookathon. So I just want to quickly walk you through um the agenda for what we're going to be covering. So let me share my screen and let's kick it off.

[00:00:45]All right. So um what we're going to cover today, what is the unis swap hook incubator? A little quick overview of some of the ecosystem updates for the unis swap uh larger protocol and then the hookathon itself as well as where you can find all of the projects. Uh our incredible partners for this hookathon, the presentations um for our demo day. So we'll have eight presenters who will present their projects and then finally the part that almost certainly everyone is waiting for the prize reveal. All right, so let's dive in. What is the unis swap hook incubator? So UHI was created a couple years ago when unis swap v4 was still on testn net. Um, and the goal was really to give builders a dedicated space to explore um, what's possible with V4 hooks, especially because when a protocol or primitive is new, it's often there's, you know, maybe some information but not a lot of clear documentation. And so it became a really important way for builders to understand how to leverage what V4 had to offer um for for unis swap builders. And it's incredible to believe that we have now just finished our ninth cohort and the program has really grown significantly since launch and as we'll talk about in a minute, unis swap and v4 have also matured tremendously over the past few years.

[00:02:28]So um what did this particular UH9 I9 group do? We had 138 Solidity developers on board. 79 of those developers started uh the hookathon 3 weeks ago and we had 98 hook projects that were shipped by 155 devs including alumni who come back to participate. And today we'll be giving out 25,000 in total prizes to the participants from this hookathon. Um, but before we dig into that, I just want to give a huge congratulations to everyone who is graduating from UHI 9 today. Whether you're in the room now watching or watching the recording later, two months of deep learning on a new primitive is no small feat. and you all have done an incredible amount of work to learn and improve. Um, and this is really just the start of your journey. So, this is not the end. And, um, we're really excited to see what comes next for both your projects as well as your own journeys as builders.

[00:03:41]And I mentioned um that the Uniswap uh broader ecosystem continues to evolve and improve. And I will call out um two launches that have happened in 2026 so far. Um I mentioned when uh UniS swap v4 started it was um complicated to figure out how to actually build with unis swap. And now um with the unis swap API as well as the community SDK it becomes simpler and simpler for builders to be able to just build. Um, so it's incredible to see the continued evolution of uh, UniS swap overall and the tools that make it easier and easier for everybody to be able to just build on unis swap. Um, and we're incredibly excited to now see what the UHI 9 builders have been working on. So what is the hookathon? Um, the hookathon is a three-w weekek long project. Builders either work on their own or in teams.

[00:04:51]Um, there's a prize pool for the best projects and the objective is really to take what everyone has learned in the hook incubator and ship a custom hook.

[00:05:03]So, we have guest workshops and technical support from Reactive Network and the Uniswap Foundation. um the best projects and presenters have the potential to present at demo day and also we've seen um strong projects from the hookathon have the potential to raise funding and launch companies and go into further accelerators and incubators um and continue to grow from there. So where can you see all of these projects? The um projects from UHI9 as well as all past Hookathon projects are live at hooks.hatri.academy and you can go ahead and filter by UHI9 to explore the full set of um projects from this particular hookathon. You'll be able to see GitHub repos, slide decks, project writeups, uh frontends for projects that have them. And I can't stress enough that while there's only eight projects who are presenting today, the full collection of projects from this hookathon really deserve to be explored. And so I would encourage you to go and check out everything that um was built for this past Hookathon.

[00:06:20]And in addition to um Uniswap Foundation who's been an incredible partner and um has really been supportive of the Uniswap hook incubator, we have had Reactive Network who has sponsored um this cohort as well as the previous cohort and spent um their time supporting builders uh both through a guest workshop that they held and hands-on support for devs as they worked through the hookathon. Um, incredibly grateful to the partnership from the Reactive Network team and super excited to see how the Reactive smart contracts continue to grow and we'll get to see a little bit of how um they were used in projects as we do demos today. And I'll just um I want to especially thank the team members from Reactive Network who supported the devs through this process.

[00:07:13]So, a special call out to Amelius and Ivan who have been really, really supportive of our developers.

[00:07:22]All right, so that is the preamble. Um, I am now excited for us to launch right into our demo day presentations.

[00:07:35]Before I do, I just want to make a quick but important announcement. Um, as with everything in web 3 and crypto, always do your own research before using any hooks. Um, these hooks are all incredible. They are very early stage and we want to make sure that everyone is, um, operating with, you know, best practices. And so, um, I will also just say auditing is a critical part of going to production. And we are excited for potentially all of these hooks as well as the rest of the hooks from the hookathon to um go through an auditing process. Uniswap foundation along with Area have um incredible resources for auditing. Um and without further ado, I am thrilled to announce our eight presenters.

[00:08:28]So we will have um eight presenters running. We'll start with hi-fi and then um from there we'll go through the rest of our speakers and uh we will get started from there. So let me go ahead and remove um my slides and we'll get Hi-Fi up and started.

[00:08:53]>> Thanks. Hey, I'm James and this is Hi-fi, hybrid finance, a platform for prop AMMs, making them economical on EVM, which gives users better prices.

[00:09:03]So, to be honest, I need to workshop that life. So, there are two fundamental truths that uh underline uh underpin hi-fi. Number one is that most LPs lose money because of toxic flow. They get arbited to death, lose because of IL, impermanent loss, etc. The second is that unfortunately the reality is 99% of users don't care about decentralization.

[00:09:22]they just want better prices on their trades. So prop AMMs have gained a lot of traction uh especially in Salana gaining over 50% of the DEX volume uh share over the last year and now they're coming to EVM through aggregators like Kyber Swap and Zerox and they do actually have better prices and that's why they've gained so much market share and um the minor issue is that for aggregators they have to integrate each prop AMM independently but the main issue is that each propm is doing these constant price updates to the prop amm uh independently which is just all the same data um which uh in EVM is prohibitively expensive in most cases um compared to Salana.

[00:10:05]So Hi-fi is the solution to this. So hi-fi is just a single um hook contract in uni v4 with a uh hi-fi controlled oracle which is doing all these like constant price updates for supported pairs so that the prop ammms or here they're called quotas don't need to. So in the same way that you can have many different um unis swap pools for the same trading pair um you can have many different quotas or prop amm competing on hi-fi on the same uh trading pair. So uh the flow is you know a trader initiates a swap uh goes through unis swap gets rooted to hi-fi hi-fi checks what the latest oracle price what the latest price is for that trading pair and then passes that price in through um a request to the selected quotota everything is on chain and the quotota uses whatever their arbitrary algorithm is to spit out an output and then hi-fi uh settles it so the the cost of um doing these uh price updates is essentially socialized across all these prop A amms which allows them to um like those cost savings get passed on to users in the form of best prices. So prop AMMs are just fundamentally better than passive AMMs in terms of like pricing efficiency. And with hi-fi like the like toxic flow um the reason that LPS are unprofitable is that uh the reason for toxic flow is that dexes are not aware of the wider market price for an asset um like you know typically on sexes. And so hi-fi solves this problem by making them aware like it it solves it at the fundamental level. It's not just like a duct tape solution like after the fact. And so because of that not not having this loss um prop AMMs have lower risk and therefore are able to quote like tighter spreads therefore better pricing.

[00:11:53]Additionally, uh prop ammms um are able to compete on things like slippage and fees uh which um passive pools are not uh because passive pools just use um deterministic x yals k algorithm whereas prop amm control their algorithm uh completely independently and so all of these together like solving toxic flow as well as being being able to compete on these extra dimensions altogether means that prop amm just fundamentally have more efficient and better pricing overall. However, as I said, um when they're doing this independently, they have all these expensive price updates.

[00:12:30]And so, Hi-Fi solves this problem. As I said, it socializes this cost um which so which allows the prop AMMs on Hi-Fi to have a lower cost basis, which allows them to offer better pricing on Hi-Fi than they would be able to independently. And so the kind of like gravity of the economics of like better pricing um draws trading volume from passive AMMs into prop amms like they have on Salana. And the same will happen with like from prop amms onto prop amm that are on hi-fi. And so um in the same way that when you create a unis swap pool uh you get plugged into everyone that um integrates unis swap you can permissionlessly create a quotota um on and get added to hi-fi permissionlessly uh and therefore get plugged into everyone that uh integrates hi-fi.

[00:13:23]Uh a very quick look at just a brief bit of code just to illustrate a couple points. So these are the permissions in the hook. As you can see, basically everything is turned off. Like the only thing that's turned on uh with Hi-Fi is overriding the swap pricing um functionality. And that's because Hi-fi, you know, requests the the price from quotas. And so you can see like this is the kind of main uh piece of code where this is the only external call in the contract uh or the only call to an external contract in hi-fi itself which is where it gets uh it calls the get quote from quotota and as you can see it passes in uh the price from the oracle into it. Um, an important note about this, um, is that this function is view, which means it's read only. And so like because it sounds scary the fact that it's it's calling a contract that had can have like arbitrary code in it. But the fact that this is a readonly function means that things like re-entry etc. are impossible. And so like because these um this function these quotas are not able to take any able to take any actual actions. And as you can see like this is the interface they have to um implement. So it's like it's incredibly simple just one just one function they have to uh implement. So I deployed this on uh base and um I was doing some price analysis uh with three or four days worth of data and my core question is um okay how often does hi-fi have better prices than existing pools. So this is our docs page. Uh I have an analysis for EthC as well but this one for example is BCC USC on base and there are three existing um pools uh on on UD3 and4 with between 3.3 mil and 11 mil um TVL and so the question is with only $20,000 in how hi-fi how often do we have the best pricing? So I'll just skip to the end.

[00:15:24]Um it it depends on both the bid like whether you're buying BTC or selling BTC and also the trade size because as I said Hi-Fi is able to compete on slippage whereas um unis swap passive amm pools are not and so hi-fi has an advantage on higher larger trade sizes.

[00:15:41]So, as you can see, uh, Hi-Fi wins about 60% of the time for $10,000 trade size and about 47% of the time for $100 when it's buying and similarly when it's selling between about 37% and 51%. So, obviously that's an incredibly amount a significant um kind of market share of uh of pricing and you know it'll it'll change week to week, but generally that's the kind of ballpark um figure that it's uh been getting. Uh so yeah, I we're we're launching this um soon. We already applied for and got accepted to the Uniswap grant for the uh the audit and we'll be raising money for it soon.

[00:16:20]So if you want to contact me about it, go to hi-fi.inance and uh use a contact form. So yeah, thanks.

[00:16:28]>> Incredible, James. Thank you so much.

[00:16:31]And congratulations on already being on the path to auditing. I uh I really love that as we, you know, figure out the future of DeFi, it's it's cool to see a product that is working to make trading on chain feel as cheap and as smooth as a big exchange and really um try to leverage everything that you have that you learned to be able to drive the best value for for traders and LPS.

[00:16:58]>> Thanks. Yeah, I appreciate that. Yeah, let's hope it works.

[00:17:02]>> Amazing. Thank you so much, James. And next up, we will have Jay uh presenting Crosshenge.

[00:17:12]I'm Jay. I build Cross, a unis swap vifa hook that pays liquidity provider back for the money they are losing right now and don't even know it. Here's how.

[00:17:25]Everyone who provides liquidity on unis swap is running a trade they never agreed to. When you put money in a pool, you're short volatility. Every time the market moves, you lose. That loss has a name and a number. 60 to $120 million a year flow out of regularly liquidity provider and into the arbitragees bought. You could hedge it. It's expensive. So almost nobody does. 95% of the LPS just eat the loss.

[00:17:54]I spent weeks inside the mechanism of how these pools work and one thing is broken. The people taking the risk gets paid last. Everyone else eat first. I build cross hedge to flip this.

[00:18:09]Here's the idea the whole thing runs on.

[00:18:11]For every LP losing money when the price moves one way, there is another who profits when it moves the other way.

[00:18:18]Opposite risk, they cancels out. The catch, they are on different blockchain, blind to each other. Cross hedge introduces them, matches them peer-to-peer. They hated each other.

[00:18:30]Nobody pays a bot. Coincidence of one protocol match opposing trades. We match opposing risk one layer up.

[00:18:41]Under the hood, two chains on the outside, uni chain and base, where LP's open position, one network in the middle, reactive, watching both chains, finding matches, settling them back on chain autonomously. And I don't use that layer for one job. I use it for three at once. Matching engine, data feed, settle settlement layer, no bridge, no keeper, no middleman. This runs without me.

[00:19:11]When there is no perfect match waiting, the vault takes the opposite side and earns a fee for it. So the same dollar does two jobs. To an liquidity provider, it's protection. To a depositor, it's yield. one cash flow, two products, and there is no token printed and there is no token rewards. Every dollar of yield is real money that was already been lost redirected to the people who earned it.

[00:19:43]Where does the money go today? LP lose bought win with cross hedge that money gets redirected to the liquidity provider as protection to depositors as yield early on that's over a million dollars a year going back where it belongs we don't create leak yield we stop a leak the engine behind all runs on reactive network 66 times cheaper than the standard alternative and it can't fail simply silently. If matching ever goes quiet, the protocol catches it in 30 minutes and fall backs to the plain unis swap.

[00:20:23]No one pays for the hedge they didn't get.

[00:20:30]Now, here is a website that I built to simulate all these transactions.

[00:20:35]So, here let's look at the live demo because this isn't a promise on a slide. It's live on test net right now.

[00:20:46]Let's connect our wallet and let's look at the simulated data and LP opens here on uni chain. The opposite opens here on base. The engine pairs them and right is back on both chains.

[00:21:02]Five transaction three blockchain under 2 minutes. And you can check it out.

[00:21:09]Here is an uh lna reactive lna transaction showing working.

[00:21:21]As you can see, we have successfully matched a transaction here.

[00:21:35]Everything you just saw is built by me, a solo, a solo developer. The hook, the crosschain engine, the vault, the math, the site, 13 verified contracts, three live chains, 423 tests, 4 weeks. That's what one focus UHI buildup ships.

[00:21:59]Next, routing residual risk to real per market for a hard guarantee. Pricing that moves with the market. A vault that flows across every chain on its own.

[00:22:09]Designed, prioritized, and coming.

[00:22:15]Real thanks to Uniswa Foundation and UHI hook incubator. The program, the mentor, the push that build uh the push that helped to build something real. I am Jay. I build unis swap v for hook defi and full stack and whatever you need. I am open to freelance and contract work.

[00:22:32]If you're building something ambitious in this space, find me. My links are right here. Thank you.

[00:22:39]>> Amazing. Leave that up there for a minute. Jay, obviously the the next step for everybody watching, if you're hiring, hire Jay. Um and very very cool project. I love um you know the focus of how to leverage web 3 and the DeFi community to help each other you know no bots no middleman's just LPs able to to connect and um you know hedge each other's risks automatically versus um continuing to leak profits to to arbitrage bots. So very cool idea, incredible execution and great work, Jay.

[00:23:21]>> All right, so next up we have um Shah from DevI.

[00:23:28]Go ahead, take it away.

[00:23:31]Hi everyone, my name is Shre. It's diva.

[00:23:34]My project deviation based uncertainty and it's mainly aligning with Zim hookason impermanent loss and my objective here is to reduce this impermanent loss.

[00:23:45]This is a problem statement. There are two major risks for piece capital. It's divergence loss and impermanent loss.

[00:23:51]And while divergence loss root cause is really obvious it just being rebalanced. The impermanent the impermanent loss root cause is not that transparent. It happens when toxic flow arbitrageers extract in value from stale pricing pools and sell this assets for higher prices at other venues.

[00:24:14]And I'm aiming to reduce this impermanent loss with my project.

[00:24:22]So I introduce a different workflow here by terms of a hook and standalone standalone protocol like system.

[00:24:31]At first I define a mechanism for considering pool stale. I use piece onchain price fits as main source of truth and by comparison of price and pool with price and price fit and timestamps in price fit and current execution block timestamp. I'm bringing in extra fees by which my pool is not natively being discovered in routing and any ordinary arbitrage will consider this pool undesirable for my system to exist and operate. I introduce new actors. They are fit keeper and sync keeper. There are some incentives for them to operate in my system. For fit keeper the flow is following. He requests price updates for price fits of peace on chain. Then they're pushing this data in my entry point in keeper executor. This data is validated against piece price feed mechanism. And if it's relevant data it's he got recorded in fit keepers ledger. So his incentive here is receiving a percentage of fees from future swaps and when there is another one fit keeper who is providing more relevant data the previous one got reassigned and the flow with rewards is reassigned as well. The next actor is a sync keeper and this is kind of complex workflow for him. So he has to request an additional data like external executor address plus some kind of role data for any Q service like bibop hash low or kubber swap. Then he passes his intent and this data to my entry point in keeper executor.

[00:26:22]There is some kind of config registry with some constraints that has to be checked against with his intent and the atomic arbitrage is executed. There are two legs one for syncing pool to the actual price in price fit and the second leg for this role data on any order service to extract the profit. Then according to the configuration, the percentage of this profit is going back to the pool as a donation for LPS and the residual of profit is going back to the keeper as a payout. At this point, he got written in the sync keeper ledger for future rewards.

[00:27:02]This is kind of modified whopper workflow. So he's scoring or know initiating a swap. Hook is checking his swap and the system state in overall what's current piece price fit state.

[00:27:16]What's current constraints in registry and are there any eligible actors in the system being recorded like keeper or sync keeper and the fees are distributed among them if they are eligible and the rest of the f is going back to the pool across LPS.

[00:27:35]So I made a little conclusion here.

[00:27:37]There are pros and cons for my system.

[00:27:39]The system itself allows to decrease or reduce impermanent loss. There are some params I mentioned here. This is a redistribution of F share like 80 percentage for LPS as usual 15 and five for syn keeper and for fifth keeper and the 50 is a percentage of profit being donated back to the pool. So with the help of my system still price liquidity is protected from toxic orderflow like harbit Russian or me bots and system concept allows to have price fits on chain harbit which can be useful for any other protocols in the network and there are also some cons from my system. So there are some pars and configuration that have to be tuned for example by by back testing system requires of course it's obvious external audits to be delivered for real fun interaction and system requires actors to perform sync.

[00:28:30]Now I'm going to jump to my demo. I have prepared a little comparison of default plane pool with my hooked pool. So at first I'm going to seat them with some of liquidity and there is a reference price in the system and during my demo I'm going to perform two side swaps plus some kind of rabbit version to have a little comparison report at the end how impermanent loss got reduced. So also there is a window for fit keeper executor flow where he provides actual price and I have to do a little pre assumption here that I will update this price on every transaction for swap not to have extra fees and have this comparison more clear this aation not to have an extra fees so see the fair competition between my hooked pool and default plane pool. So, I'm going to just perform a sync at first to have price in sync and no extra fees and like two swaps with maintaining price in sync.

[00:29:44]Then I change the direction plus keeping price in sync by fit keeper.

[00:29:57]Okay. And the last one swap we see there is like was two directional to a plus two for swaps and there is not a big difference in extra for fees. And at the current point, let's assume there is kind of sharp jump of the price till that point to create an average opportunity.

[00:30:17]And we can observe there are two opportunities for plane pool and my hooked DVA pool. We can see there is some kind of difference profit values.

[00:30:26]And this is because one more incentive for sync keeper execution. There is lower fees for this sync operation in comparison to default pool. So this arbitrage is executed. You can see there is like 500 there is 600 in overall but 300 is donated back to the pool and this in keeper is set as active one for fee redistribution. So he's receiving future fe shares from the swaps. So we are back here to swaps. We perform again four swaps maintaining price and sync in the price fit.

[00:31:04]change the direction and the last one.

[00:31:16]Okay. So at this point I'm going to collect a report which performs extraction of the initial liquidity being put in the pools and we will see the difference here. So what do we see right here? We see that there is kind of a loss for net profit for both pools like 500, 550 or and 400. And we see that there is an amount which was retained by my hooked diva pool and we can see the whole breakdown here for the money flow cash flow. There are some swap fees and ordinary pool. There are some fees and hooked pool but they are lower because of kind of share being redistributed across the actors of the system keeper and fit keepra. But in overall comparison we can see that there are more net retained of liquidity by my hook pool and we can see like whole breakdown what was LP liquidity extracted net profit what was the plan arbitrage profit what was the syneper profit it's cut like two times what was the donation what the sync keeper keeper share right here and we can see that there is this difference caused by donation back to the pool during the sync keeper intent like 150 and what can I tell you here it's great we reduced impermanent loss here by terms of my hook and standalone protocol like system that's it >> incredible I love seeing a solution for you know when prices go stale um how do you spot that danger and you know adjust fees turn them up and reward people who are keeping prices honest and create more fail fair fair deals for LPS. So very very cool. Great work.

[00:33:06]>> Yeah, thanks. I think it's great. It can bring some kind of lower impermanent loss to the users and since I'm the one who is a liquidity provider as well, it's really sensitive to me.

[00:33:20]>> Yeah, I think that's exactly the sort of problem that's worth solving are the ones that you acutely feel yourself. So, incredible work and I can't wait to see what's next for Divia.

[00:33:31]>> Thanks.

[00:33:32]>> All right. Thank you so much. And then next up we have Moses with Intent LP.

[00:33:42]And I'm just waiting for the screen to show up as well.

[00:33:51]And Moses, you're muted and off camera still.

[00:33:58]give you a minute to come on.

[00:34:06]Otherwise, Unistrada, if you want to be ready to jump on if we can't get Moses.

[00:34:17]So, yeah, Dave for Unistrada, if you want to get ready. Oh, and then we'll flip back to Moses afterwards.

[00:34:28]There we go. Beautiful. Thank you so much, David.

[00:34:31]>> Hi.

[00:34:31]>> Hi, everyone.

[00:34:33]Hi, everyone. I'm David and this is Unisa.

[00:34:37]It splits a unis swap v4 pole into two layers, EF1 and K1. Similar to bonds where they have a senior and a junior, every unis swap liquidity provider places a bet. When the price when the market is calm, the price the end yield but when the prices swing they lose and that loss is called impermanent loss or LVR. It is the large it is the biggest unedged bet against volatility in DeFi.

[00:35:18]Now this is my this is the front end for unstructor.

[00:35:27]Yep. And I've opened this is a W to T USDC pool where I've I simulated a 65% trend. And after that I deposited to the two layers of the pool. This is the risk taking side of the pool and the stable side of the pool. So I'm going to crash the pool by 40%.

[00:36:07]So while that is running so uh liquidity providers the price the price liquidity providers bleed to arbitrage can be measured using this formula which is the market volatility squared divided by 8 which simply means when the market is calm the bill is low but when the market is frantic, the bill goes up.

[00:36:38]So we split the pool into two sections.

[00:36:41]A sediment which absorbs the impermanent loss but keeps the swap fees plus a premium and bedrock which holds a flat principle and ends steady uh yield.

[00:37:00]What oracle do we use the so the pool prices itself with it's on during after swap when during each trade the hook checks the risk score and updates it no without any external or price to manipulate and it settles itself uh itself across chains using reactive network. So I deploy the contract on reactive network that checks for uh checks the risk score of the pool and when the price the risk score spikes it triggers a call back on uni chain. So the hook is deployed on uni chain. So the contract on reactive lazer listens for an event on the deployed hook on chain and triggers a call back to settle on the pool when there's a spike.

[00:38:09]So now we can see that yeah it was both were 10,000 in the pool. So this was the uh safe part of the pool and this was the risky part of the pool. So when I crashed the pool by 40% is only the risky part that was affected.

[00:38:34]So only if you subscribe for a to be affected by permanent loss for that's when you get affected by impermanent loss. But when you pick a safe option, you are protected from empowerment loss. And this is the the function that called emergency settle from reactive L. Now check that.

[00:39:08]Yeah. And this is the this is the transaction that called uh emergency settle back on uni chain from reactive laz.

[00:39:35]Yeah, this is the call back proxy calling the calling the function on uni chain back to so everything is live on uni chain polia and reactive scanner you can test out the app onslapp So liquidity providers were forced to sell volatility and unis built the pile. It is a new primitive for structured product on emm liquidity.

[00:40:18]Um thank you.

[00:40:22]>> Thank you so much David. Uh and now I get the name unistrada. Um, very very clever and it's cool to see again DeFi as it grows like you know the ability to have a liquidity pool work like a proper investment product with a steady protected tier for cautious investors and a higher risk higher reward tier for the brave. So incredible work very cool project um and excited to see how it continues to grow.

[00:40:53]>> Thank you.

[00:40:54]All right, amazing work. And then next, let's see if we can get Moses back and All right, perfect. I see you. Let's go.

[00:41:05]>> Hello everyone. My name is Moses and I built intent LB. Unis swap V3 and V4. um hook allows liquidity providers to deposit tokens into pools and earn fees from trades but they have no control over what trade passes through their position and this is one of the driver to impermanent loss that is the fees that they earn over the losses caused by adverse drive notes. So all the solutions that have bone all this while are not on the hook layer. They all have bone like um keepers and rebalancing BS like um chain link autom automations and they all are reactive not preventive. So intent LP hook is here to provide onchain condition that can help LPS have a preventive measure to this. So intent LP is a before hook that let LPS register unchained conditions and sets an intent that define exactly when the liquidity can be used. Say for instance I set a liquidity I provide a I provide some tokens into a pool and I set my condition to be only route through my position when swap size is between 0.58 and 58. current time is between 9:00 a.m. and 17 UTC and then my max liage I'm allowing is under 1%. So any trade that passes through this goes goes through but any trade that try to violate that has a penalty fee to pay up to 30%. And this penalty fee is sent to the LPS and they are they are given to them as um compensation for allowing such traits pass through their pass through their positions. So the the logic there is the pool is never had blocked. All swaps are still going through but anyone that violates the positions or the conditions that the LPS provide are counted as um violations and they pay higher fees and then these fees are then paid to the liquidity providers. Everything is on chain no external but no external um protocol dependencies and all that. So let's look at how this works on the demo aspect.

[00:43:34]So here I'm on the um site itself where I'm going to demo. So I'm going to set my minimum talk volume which I want users to be able to swap tree. I'm going to set it to one and I want my max volume to be let's say 20. Then my max sleepage that basics point is 100 basics point.

[00:43:56]Then I want my active hours to be from 9:00 a.m. in the morning to around 1000 p.m. in the night. So I'm going to register this intent on B secular. So I'm then confirming this on my wallet.

[00:44:11]I'm confirming this and it goes through here, right? So it goes through and if I come to my dashboard I'm going to see that okay I just registered an intent here my minimum value minimum volume is 18 and my maximum volume is 28. So any swap that wants to go between 1 to 20 is going to go through. That is clear. But any swap that wants to go above 20, let's say 21, I'm going to have a moderate which is more like there's a violation here. And there's going to be a a a fee that is charged for this to go through and those fee are going to go to the office. And beside this there are rewards that helps to keep this running and equally attract liquidity providers to this particular. And I implemented this using the circle um reward which uses USDC to reward liquidity providers.

[00:45:10]So you can come here anybody can actually come here and deposit some tokens some USDC. So let's say I'm depositing 20 USDC to the pool so that it distribute to every liquidity providers in this particular um platform. So I'm confirming that and I'm going to approve the transaction on my wallet and I can see here it goes through. So to confirm this I'm going to see my block explorer also that I've approved this to go through the liquidity and back to my application.

[00:45:50]So the liquidity the reward that is being set now is shared across all the liquidity providers on this particular platform at this moment. So everything is adding up. So a liquidity provider can come to this reward and claim the reward that have accured for them. So I'm claiming over here now and that goes through.

[00:46:18]Yeah, that goes through and I have zero here because I've claimed that and the reward pool is still counting and I'm still getting my pending rewards back to that. So that's basically what um index LP does for liquidity providers. So this is my um GitHub in case for any collaboration and contribution for your project in the future. Thank you so much.

[00:46:42]>> Incredible work Moses. Um and just a very cool again I am really excited about all the ideas that have come out of this project and I love this kind of smart middle ground. you know, rather than like slamming the door on risky trades or letting everything through, letting, you know, liquidity providers set their own rules and figure out their own levels of risk. Very, very cool. So, great work. Incredible project. And again, I'm excited to see what comes next.

[00:47:16]>> Thank you.

[00:47:17]>> All right. So, next up, we have Schwetta with Mochi Yield and an incredibly cute little design. I love this.

[00:47:27]>> Thanks Theresa. Um so hey everyone this is Shwetta and today I come with this problem of um there is like 37 millions of unstaked Ethereum uh which is uh rotating on chain but most of them are passive so users can earn reward but they can't use it uh usually like trade on its future or hedge against the uh interest rate exposures or separate the value of the asset from the from what it generates. So fundamentally what happens is um in any stake token we have two parts which is principal token and yield token. So the principal token is what is the underlying value of an asset which the user can claim upon its redemption and yield tokens are basically all uh the token which are collecting the yield until the m maturity. So a person who might be bullish on the yield can buy more of it or the person who is not so bullish is slightly bearish can stick onto the PT and the best part is they can do all of these without actually owning the stake tokens because the LP providers are the one who will be putting out their stake token into the market. So majorly we have uh three problems at this stage. So the yeah the main uh people who are staking the stake token get all or nothing. So uh the asset generally ends up lying into the wallet with just fixed return of interest. Second problem is AMMs are time bound. So a flat fee is set for all of their asset. As it's approaches the maturity the prices often get mispriced by the normal AMM. So we built a custom AMM totally on unis swap. And lastly uh there are two pools associated and balanced by the stable coins but there is no correlation between those two pools and uh for that reason the price gets drifted apart and the underlying assets prices don't get balanced. So how we are solving this? So we are solving this uh in three ways. So uh we have made moji hook that sit on top of PT and YT pool and this enforces three layers and these three layers happens atomically with every swap. So at first the implied trade sentinel calculates that whether the swap should happen or not because it uh blocks the bad trades and which uh economically might give like economically irrational or negative yield which is very harmful for the yield market. Second is maturity fees decay. Uh so with every swap the prices sort of recalculate so that when the volatility approaches uh so does the fee. For example, here we can see whenever an LP uh puts into the price, the interest is very much high and the fees is very much high during uh the initial phase since the risk is very high but it as it approaches the maturity it decays since the risk also decays. So uh this is the second thing and the last thing is uh cross pool parity oracle which we have made using uh reactive hooks which basically keeps a check on the parity drifts between the pt and yt pools and anytime it's detected then it emits an event which basically u balances the fees. So let's uh jump into the demo. I'll show you uh jumping onto the markets. We can see at the top here is a parity drift checker we have placed which basically calculates the underlying asset here. As we can see the PT is priced at 0.94 and the YT is 0.5 which adds up to approximately 1.48 which is like 48% overvalued since the underlying asset was one Ethereum uh for demonstration purpose. And here we can see uh it is giving me a blinking sign that means the reactive hook is um under the hood working to dynamically adjust the fees. And here are our main two pools. And here I will try to perform out some swaps which will give the example of how the implied rate is working and how the um parity drift is being checked. So first let me try to buy some YT.

[00:52:20]So I can just try to buy 10 YTS.

[00:52:26]And as we can get confirmation it's done.

[00:52:33]So what happens is under the hood three things happened which we can check.

[00:52:39]First of all, um the trade happened, right? And second of all, the parity drift is uh sort of recorded and third of all the fees is adjusted. So over here we can see all of these logs in the analytic section and uh coming back to the markets again we can see that our implied APY has been changed. So that's the idea of how the markets uh should be balanced by this parity drift protocol.

[00:53:12]And if anyone wants to try this thing out, they can simply go onto the world section and they can mint some amount of token into their wallet. So I'll just um mint this token and you can see you will get the updated balance over here. If I refresh my page uh is updated. So then you can deposit the number of uh staked token which you might want to demonstrate this for and simply when you receive this tokens in your uh virtual wallet you can test this thing out. So that's it for Moshi yield and if you want to read about the documentation I have had a pretty comprehensive uh guide of it. So thank you so much.

[00:54:05]>> Thank you Schwatha. Um both love the branding and also the idea again it's really just such a strong theme with this cohort around adding kind of more traditional finance thinking. So that fixed income thinking added into DeFi that splits, you know, a yieldbearing asset into a more cautious option as well as something for risktakers. Um, and an incredibly cute branding and package. So very, very cool project.

[00:54:35]>> Thank you so much. Looking forward to pushing this out.

[00:54:39]>> Yes, that's the next step for sure. Um, great great work.

[00:54:44]So um next up we have Par with uh either is it schizo or is it shizo >> shizo. All right with shiso. Let's take it away.

[00:55:00]>> Yeah. So hello everyone. I am Pra and this is Shizo. One line LP fees without the loss. Impermanent loss is one of the biggest reason most capital does not stay in AM. Everyone so far has tried to shrink it. Elcho does something different. It makes it sellable. Now here's the thing. Nobody talks about every LP position is two trades stable together. One is the free income which is steady and grows with volume which can be a very good yield option for a D treasury or a stable coin. But the other side which is the impermanent loss. This is pure priceless exactly what a volatility trader would want. But we are forced both into one token. So what this does is the treasury is sitting out too much risky and the trader is sitting out too babysitted and the liquidity that should have shown up just never does well. She splits the position at the time of deposit. You put in a real V4 liquidity and it gives you two transferable tokens. The fee it holds the swap fee plus an upfront premium.

[00:56:01]This is for yield seekers. The ILP carries the impermanent loss and pays a premium to take it. This is for volatility traders. Thus, impermanent loss stops being a tax everyone needs.

[00:56:13]It rather becomes a price taxable instrument. This is the difference between trunching a bond and inventing a credit default swap.

[00:56:22]Now, concretely, here's the handshake.

[00:56:25]The LP deposits and gets PT and ILT. The hunter buys the ILT paying the premium.

[00:56:31]Now, message by message, every swap image swap occurred and reactive contracts ask for the position data to which hook returns a per position price.

[00:56:39]Now you may ask why per position. So this is only because uh we don't want a WTC based pool to affect our link based pool and reactive contract settles the new IL mark on chain every swap with no one in the middle.

[00:56:55]Now that's the whole system. Two contracts, two chain and one event loop.

[00:56:59]Our V4 settles everything and emits the price details on every swap. It remains cheap and has no heavy computation in its hot path. price emission is triggered and a reactive contract to pull its price details from hook and do the heavy IL math in the react VM and that is why Shizu needs the reactive contract because IIL changes on price change which happens on swap. Thus the system needs to update the mark on every swap in a trustless manner with no keepers or chron. The swap event is the trigger and the loop runs by itself. Now without wasting much of a time let's dive into the demo. So this is the sheets homepage. Let me quickly navigate. You can see the pools here.

[00:57:45]The pools are shown here and along with their trends and the price and the fee.

[00:57:50]The fee is dynamic too. It is not just a hard-coded value. It changes as a function of price. Create page if you want to create a new position or become an LP. hunt if you want to buy the IL tokens. Well, market space displays everything where all the positions that are open currently. Pulse is basically the ledger for this platform. It holds everything now not resting it it just to the RPC call which is for some hours on blockchain. It is a backend base. So you can see all the data bundles that have been emitted till your leader space to give it a gamifying look where you can compete on whether how many tokens you have been buying or selling. Dashboard this is your personal site where you can see all your active positions and you can even share them on X if you want.

[00:58:42]Now let's directly come to home. Let me open my wallet to the side.

[00:58:48]And yes, now I want to create a new bond. So I'm not a hunter. I'm just wanting to create a LP position here. So let's take the yes this one only. M USDC and MT pool. I want to deposit 1.6 MUSDC. And I want to charge a premium of 1.2.

[00:59:11]It shows that how much MSDC and MB I'll be depositing. Now let's unintent it.

[00:59:23]Here's the transaction from wallet. Just confirming it. Hopefully we are on mini chain. It would be passed. And yes, here it is. So now the position has been minted. How can I confirm it directly?

[00:59:36]Let's jump to the markets page. If I have a new position, it will be there.

[00:59:39]And you can see the active bonds have been raised.

[00:59:42]So here is the new position that I have just mainted and you can see no history because nothing has been done yet. I stands at zero and here is my dynamic car. So now if I say I want don't want to create a position. I rather want to hunt a position. So I can come through here and here can see I'm a hunter. I will be directed to hunts page. Now this hands page has two active positions. Whichever one I can buy, it shows that what is the current liquidity and what is the premium of tokens I want to pay. Let's say I buy this one and it will again pop up the Metam mask for the transaction to be done.

[01:00:26]And yeah, that's it. Transaction is in Metamas. And now just hitting confirm that yes, I want to buy the IL token.

[01:00:35]And yeah, I token has been acquired. And when I go to the dashboard, I can see that yeah, for question number three, I have both the fee token and the IL token. Now, let's see happen. So, we are here in the swap and that the current rate of 0.334 and I already showed you that the IL mark zero. Now, let's swap something.

[01:00:58]I want to swap 10 MSUDC for this. Now, let's just swap and remake. So what it will do it it will emit an event which the reactive contract should catch and ask the hook to get us back the price details. So let's me confirm the transaction and yeah the swap has landed on mini chain support. Yeah. So let's open our reactive contract which we can see here the reactive contract. Yeah this is my reactive contract for the uni chain system. Now let's come into the RBM transactions and yeah we can see that 13 second and 6 second it did as it meant and it raised five call backs which is exactly how many we need five positions so backs now if we come back here come up come to the dashboard and see the IL position has changed to 0.14 so everything is dynamic everything is on chain and we can see that it is at 0.13 now This will appear only when there are sufficient number of swaps to get the trend. And in the hit history tab, we can see that yeah the RSC marked the position at 0.14.

[01:02:13]And yep that's it. I this part and now let me just quickly show you. I have also written some tests which are in total of 74 tests including both the fuzz and invariant testing.

[01:02:28]So we can see that. Yes.

[01:02:56]Uh, Par I don't think we hear your audio anymore.

[01:03:02]If I don't know if you muted yourself.

[01:03:06]>> Yeah.

[01:03:07]>> Yeah. Yeah, you were muted. Um, so if you want to uh Yeah, just hop back to when you were showing us the code really quickly.

[01:03:17]>> So this was the test that actually passed.

[01:03:20]So we ran seven test suits. 74 tests passed. These test includes both the invariant testing and the first testing.

[01:03:27]That was it for the testing part. And yeah, that's it for sheets of this post.

[01:03:32]And thank you for being patient.

[01:03:34]>> Amazing. Uh yeah, you we we lost your audio right there at the end. But again, just an incredibly interesting idea, really well executed. I love uh the idea that, you know, impermanent loss doesn't just have to be something LPS swallow.

[01:03:49]That you can turn it into something, you know, that's that's tradable and uh create the opportunity to have people who want the risk uh actually take it on.

[01:04:01]>> Yeah. Gamifying the laws.

[01:04:04]>> Yes. Very. So, very very cool. Great work. Um, and again, very excited to see what comes next for uh for you and for uh Shiso.

[01:04:16]>> Yeah, thank you.

[01:04:17]>> All right. And now uh finally um last but not least, we have Max who is presenting Token Launch Hook Studio.

[01:04:29]>> Yeah. Hi, I'm Max and uh this is Token Lunch Hook Studio. What you're looking at is a live app. Uh it's a studio for four lunch hooks and the first hook built on it is a fair lunch hook. I think all of us remember that problems.

[01:04:45]Uh every token launch gets hit by the same things. Snipers grab the first block sandwich BS tax buyers terms teams pool liquidity access is not fair. All of that happens in the pool and not in the token. So instead of baking antibbot code in the US20, we put the rules in one before hook that runs on every swap at and remove liquidity and your token uh still stays a plain 20 token. Uh the hook give you four mechanisms an anti-nite cap and decaying buy sell text a liquidity lock and the optional white list enable any subset per launch and the control is just your position is a governance NFT no admin key and uh you can only even make the rules more fairer. Uh that's the idea. uh let me uh show you how it is work. So first of all here you can see these four mechanism that I talked about that I told uh before and here you can see uh some badges as well uh which is exactly V4 hook call backs which will fire during this mechanisms will work.

[01:06:06]So, okay, let's uh just launch the campaign.

[01:06:12]So, I connect wallet.

[01:06:16]Oh, guys, yes, I I think you did not saw my wallet, but it's it's a plan. Yeah.

[01:06:22]Okay, let's launch. So, uh you can we can use existing token or we can uh deploy a new one.

[01:06:33]Uh let's do it.

[01:06:40]Yes, I think that uh one million it's okay.

[01:06:48]So I have some issa uh so you can choose the player token. So it could be yes 20 or I just want to use native because I had it on chain.

[01:07:00]So let's see. Oh yeah yeah I have it.

[01:07:05]So duration you can uh adjust duration of this campaign. So I just say one day because after after this duration uh the pool actually became a simple swap pool and let's uh for example uh choose uh two mechanisms. This is anti- snipe and uh text. So now I choose buy tax uh 3% and uh sell tax 5%.

[01:07:40]Yep. Uh for 7 days for for 7 days only.

[01:07:45]Okay. So let's launch here is the preview.

[01:07:54]Okay. Let's do it. Just sign transaction in the wallet.

[01:08:01]Mhm.

[01:08:04]Yeah, here it is. So, and we can check uh it's right in the block explorer and here we can see that uh 20 uh contract was created during this transaction and uh LP position was provided to the pool and uh I got the governance NFT as well here.

[01:08:28]Okay. So now for example let's try to make a swap in this uh pool and here you you can see now that by text is 3%.

[01:08:40]Okay I will pay with this yeah okay.

[01:08:56]Yeah, I think swap will be done. Yeah, here we can see swap was done.

[01:09:03]So, and now for example, let's try to uh make some edits in this campaign.

[01:09:13]Here we can see this. Yeah, here is our campaign.

[01:09:22]So here for example I want to make uh all fees a little bit lower.

[01:09:29]So okay let's put here two and uh three here.

[01:09:37]So we should sign transaction in the wallet.

[01:09:43]one done and uh second transaction done as well. And now if we try to make a new swap, we can see that uh tax is uh another and if we try to sell tokens that we see that the text is uh different.

[01:10:10]So I think it's enough for demo uh actually. So I have some plans to improve the UIX and actually as as I told before there are only one hook and these mechanisms are that only uh which I was just have in my mind but it could be done more and what I am trying to add to this this is a protocol fee so make some your Okay. So all these stuffs you can find on GitHub and presentation and video demo and quotes and samples of transactions.

[01:10:54]So okay, thank you.

[01:10:58]>> Incredible work, Max. And again, I just cannot reiterate enough how exciting it is to see uh real and obvious pain points and uh you all working to solve them. So, I think it's so smart. Like, we've seen token launches get um you know, basically just sniped and rugged in the first 30 seconds and thinking about how to solve for that to have fair launch protection straight into the pool and create the opportunity for fairer launches. Um, super super smart and again, I am very excited to see what comes next.

[01:11:36]>> Thank you.

[01:11:38]>> All right.

[01:11:39]Um, incredible work to all of our presenters and a huge congratulations to them all.

[01:11:46]Um, really great presentations and I will just, um, I can't reiterate enough uh, this was an incredible group of eight and it really is just the tip of the iceberg in terms of the great quality of presentations.

[01:12:03]Uh we'll have a recap going up on uh X of of projects in the next week. Um and I also want to take just a quick moment and I know all of our presenters and the entire cohort would agree. Uh I want to say a huge thank you to Regina from the Atrium team who spent a lot of time with our presenters making sure that everybody had exactly what they needed to be able to um present and show off their work as best as possible. So huge thank you Regina for making sure that everybody was uh ready and had the best possible presentation.

[01:12:41]And um a reminder for everyone that you can see all of the projects uh on the hook directory as well as the rest of uh9 and all of our alumni projects at hooks.atrium.academy.

[01:12:59]Um, and now I know this is the moment that everyone has been waiting for, prize time. So, um, I will just take a quick moment to, uh, before we announce prizes, just tell you a little bit about how projects were um, awarded prizes.

[01:13:21]So, projects were scored across five areas: originality, unique execution, impact, functionality, and presentation.

[01:13:29]Um they were then shared with our sponsor partners Reactive Network and Uniswap to do an additional round of scoring on their respective prize tracks. And as we are announcing these winners, um they will be also announced on X in real time. So uh we'll look forward to celebrating your wins there as well.

[01:13:55]And now with a little bit of a drum roll, um I will announce our first our reactive network winners. So huge congratulations to the reactive network track winners. We had Janu from Lambda, Rudra for Maestro, uh Dian for Veraritoss, and uh David for Unistrada.

[01:14:22]Um, and again, just a massive, massive thank you to Amelius and Ivan and the entire Reactive Network team for their work in uh making sure that all of our Reactive Network builders were able to build. All right, next. Um, this is a huge slide, so bear with me as I do the announcing here. So for the theme winners for our impermanent loss and yield systems theme um congratulations to AJ for orbital tonin for IIL awareness limit order hook um Yousef for backs stop Jay for cross hedge um Hebex for even flow Aryan for Ybam Jonnu for lambda um and uh Dian for Verit And then for our general atrium and unis swap prize winners um we also are excited to um award prizes to uh mainet forker for indimnify Anton for iigen auction James for hi-fi sarhe for devia moises for intent lpwa for emoji yield par for shiso and max for token in Launch Hook Studio. Incredible uh work for all of you. If you uh were awarded a prize, you w um can expect that you will get uh some followup from Regina in Discord and we will be working to get our prize winners their developer grants next week. So again, huge huge congratulations to all of our winners.

[01:16:15]Um, however, I do want to just say regardless of whether or not you won a prize today, um, this is really the beginning for all of you rather than the end. So, what comes next, keep building.

[01:16:30]Um, Atrium and Uniswap are here to support you as you continue to develop your hook. Um, we'd encourage you, much like we have through the entirety of the experience, share your big wins. Um, whether it's grants, accelerators, funding rounds, mainet launches, new roles in DeFi. This is really the start of your, uh, journey. And you should expect a graduation email with your personalized certification um as well as it minted as an NFT um with a link to get swag and an invite to the UHI alumni telegram group which will come early next week. Um I also do just want to highlight that we have uh founders perks for alumni. So, as you're continuing to build, um, we have partnerships with, uh, Aretta for getting you, um, auditing support and subsidies, uh, with PAR for embedded wallet solutions, Chronicle for data and price feeds, and, um, for uh, node ops for basically um, the it's a tool for deploying and developing uh, AI supported uh, builds. So, um, incredible resources for you all. And again, I will keep hammering this for everyone who is continuing to think about building, but um, I would encourage you to seek audit support through the Uniswap Foundation Security Fund. Um, I know James mentioned he's already secured a grant to get audit support. Um, the, uh, UNIS swap security or UNIS swap swap Foundation Security Fund is an incredible resource. um the uh they award subsidies on the 7th of every month. So if you apply now, you would be in the July 7th batch and the link to apply is in the bottom corner and uh I encourage you all to continue to work on that. Um, I will also just plug uh the hook atlas which is a great resource for you all as you continue to keep building in terms of what opportunities and whites space there is as well as just um how to think about the unis swap um v4 ecosystem more broadly and explore some of the past projects that have been built. So very final thing uh is um for those of you who had a great time uh or those of you who are watching and are thinking I want that to be me next. I believe I saw um Jay watched this uh presentation in uh April when we had it and said I want that to be me. So if you're watching this and thinking I want to join our next cohort starts July 2nd.

[01:19:26]It's nine weeks, roughly about 10 hours a week. An incredible team to support you. You get to kind of speedrun V4 expertise, join an incredible community of supportive, smart, experienced Solidity developers, and uh deadline to apply for this cohort is this Sunday, June 21st. So, we'll look forward to um having you join us for the next cohort.

[01:19:52]And again, a final just huge huge congratulations to our UHI nine grads and our prize winners and our presenters. Um really this whole experience is only special because of the work that you all put in and it's really exciting to see what you've been able to accomplish and we are very very excited to continue to watch you grow and build and change this ecosystem for the better.

[01:20:21]Thank you all so much. Um, I'm going to encourage you to interact with us on X.

[01:20:27]Um, share out your successes, um, what you've learned, and we'll see you over there on the socials.

[01:20:36]Take care, everyone.