Dynamic fee Uniswap v4 Hook using cross-chain Chainlink volatility data via LayerZero
Summary: This project implements a Uniswap v4 hook that dynamically adjusts trading fees based on real-time volatility data sourced from multiple blockchains. By leveraging Chainlink's price feeds on Arbitrum and transmitting this data via LayerZero's cross-chain messaging protocol, the hook creates a more responsive and risk-adjusted fee structure for liquidity providers.
Technical Architecture: The system consists of three core components: a data ingestion contract on Arbitrum that reads Chainlink's ETH-USD 30-Day Realized Vol metric, a LayerZero bridge integration that securely transmits volatility data across chains with minimal latency, and a Uniswap v4 hook contract that receives cross-chain volatility updates and implements dynamic fee adjustments in the beforeSwap function.
Marcus Wentz Dina Deljanin Mylo Bennett
(original template README below)
This template provides a starting point for writing Uniswap v4 Hooks, including a simple example and preconfigured test environment. Start by creating a new repository using the "Use this template" button at the top right of this page. Alternatively you can also click this link:
- The example hook Counter.sol demonstrates the
beforeSwap()andafterSwap()hooks - The test template Counter.t.sol preconfigures the v4 pool manager, test tokens, and test liquidity.
Updating to v4-template:latest
This template is actively maintained -- you can update the v4 dependencies, scripts, and helpers:
git remote add template https://github.com/uniswapfoundation/v4-template
git fetch template
git merge template/main <BRANCH> --allow-unrelated-historiesThis template is designed to work with Foundry (stable). If you are using Foundry Nightly, you may encounter compatibility issues. You can update your Foundry installation to the latest stable version by running:
foundryup
To set up the project, run the following commands in your terminal to install dependencies and run the tests:
forge install
forge test
Other than writing unit tests (recommended!), you can only deploy & test hooks on anvil locally. Scripts are available in the script/ directory, which can be used to deploy hooks, create pools, provide liquidity and swap tokens. The scripts support both local anvil environment as well as running them directly on a production network.
When installing dependencies with forge install, Github may throw a Permission Denied error
Typically caused by missing Github SSH keys, and can be resolved by following the steps here
Or adding the keys to your ssh-agent, if you have already uploaded SSH keys
Some versions of Foundry may limit contract code size to ~25kb, which could prevent local tests to fail. You can resolve this by setting the code-size-limit flag
anvil --code-size-limit 40000
Hook deployment failures are caused by incorrect flags or incorrect salt mining
- Verify the flags are in agreement:
getHookCalls()returns the correct flagsflagsprovided toHookMiner.find(...)
- Verify salt mining is correct:
- In forge test: the deployer for:
new Hook{salt: salt}(...)andHookMiner.find(deployer, ...)are the same. This will beaddress(this). If usingvm.prank, the deployer will be the pranking address - In forge script: the deployer must be the CREATE2 Proxy:
0x4e59b44847b379578588920cA78FbF26c0B4956C- If anvil does not have the CREATE2 deployer, your foundry may be out of date. You can update it with
foundryup
- If anvil does not have the CREATE2 deployer, your foundry may be out of date. You can update it with
- In forge test: the deployer for:
forge create src/EthRealizedVolatility.sol:EthRealizedVolatility \
--private-key $devTestnetPrivateKey \
--rpc-url $arbitrumSepoliaHTTPS \
--etherscan-api-key $arbiscanApiKey \
--broadcast \
--verify forge create src/LayerZeroArbToUniOApp.sol:LayerZeroArbToUniOApp \
--private-key $devTestnetPrivateKey \
--rpc-url $arbitrumSepoliaHTTPS \
--etherscan-api-key $arbiscanApiKey \
--broadcast \
--verify forge create src/EthUsd.sol:EthUsd \
--private-key $devTestnetPrivateKey \
--rpc-url https://sepolia.unichain.org \
--verify \
--verifier blockscout \
--verifier-url https://unichain-sepolia.blockscout.com/api/ \
--broadcastforge create src/LayerZeroUniToArbOApp.sol:LayerZeroUniToArbOApp \
--private-key $devTestnetPrivateKey \
--rpc-url https://sepolia.unichain.org \
--verify \
--verifier blockscout \
--verifier-url https://unichain-sepolia.blockscout.com/api/ \
--broadcastforge verify-contract \
--rpc-url https://sepolia.unichain.org \
<contract_address> \
<contract_file_path> \
--verifier blockscout \
--verifier-url https://unichain-sepolia.blockscout.com/api/forge script script/00_DeployHook.s.sol:DeployHookScript \
--private-key $devTestnetPrivateKey \
--rpc-url https://sepolia.unichain.org \
--broadcast Use the contractAddress from CREATE2 from
broadcast/00_DeployHook.s.sol/1301/run-latest.json
then run
forge verify-contract \
--rpc-url https://sepolia.unichain.org \
<contract_address> \
src/Counter.sol:Counter \
--verifier blockscout \
--verifier-url https://unichain-sepolia.blockscout.com/api/https://sepolia.arbiscan.io/address/0xeef4f98dd12fcc6193ccce792f3983803d0b56ed#code
https://sepolia.arbiscan.io/address/0xc26ea02fb53594952b64559278bd0622555584e4#code