727 FinanceUniswap v4 launches aggregator Hooks, wrapping external liquidity from Curve, Fluid, PancakeSwap, and others into standard v4 pools, and directing fees toward UNI burning. This is a move toward becoming an "on-chain liquidity entry point," but the short-term gain in UNI value capture still depends on whether fees are charged on high-traffic pools.
Original | Odaily Planet Daily
Author | Golem
On October 22, Uniswap v4 announced the launch of the Aggregator Hooks feature. Aggregator Hooks can wrap external liquidity sources into standard v4 pools, and already supports 7 external sources including Curve, Fluid, and PancakeSwap, covering the Ethereum mainnet, Base, and Robinhood Chain. The team stated that this has enabled Uniswap to cover over 90% of DEX activity on these chains.
Uniswap's founder also posted [stating](https://x.com/haydenzadams/status/2113293384601268636?a=3wSPrAG4-GBX109RHXk&s=20" \t "https://www.odaily.news/zh-CN/post/_blank") that by integrating aggregator logic into Uniswap v4 hooks, with this integration, the Uniswap API and APP are undoubtedly the best aggregator on the market.
But even a week after launch, users may not have a strong sense of the Aggregator Hooks experience. This is because when users trade through Uniswap, the router automatically compares prices between native pools and these wrapped pools and selects the optimal path, with no need for users to manually enable anything or grant any authorization. For investors, what truly matters about this feature is that Uniswap still charges fees on trades routed through these wrapped pools, and uses the fees for UNI burning.
Through Aggregator Hooks, Uniswap v4 captures fees generated by liquidity it does not own, reinforcing the UNI burn flywheel. This also means Uniswap is moving toward becoming an "onchain liquidity entry point," shifting from providing liquidity to distributing liquidity.
Uniswap is already the largest DEX onchain, with cumulative trading volume having long surpassed $10 trillion. But in terms of actual usage, with the development of wallets and various onchain liquidity aggregators, most users no longer interact directly with the Uniswap APP. Although Uniswap has also been deeply integrated into countless wallets and aggregators, and Uniswap's position essentially has not declined, the importance of the Uniswap frontend has indeed become increasingly low.
Uniswap v4 Aggregator Hooks are changing this situation. Aggregator Hooks give users deeper liquidity and better execution without changing their experience, which may allow Uniswap's frontend to regain competitiveness in the market.
While acting as infrastructure that provides liquidity, Uniswap also wants to become the liquidity entry point for routed trades. Uniswap is moving toward Jupiter's model.
Jupiter is the most popular aggregator in the Solana ecosystem. According to DefiLlama data, Jupiter's aggregator has routed cumulative trading volume exceeding $1.3 trillion. Solana's total DEX aggregator trading volume over the past 30 days was approximately $27.115 billion, of which Jupiter accounted for about $13.354 billion, or nearly 49.3%, ranking first. Historically, Jupiter even once monopolized more than 90% of Solana aggregator trading volume.
Of course, Jupiter does not only operate as an aggregator. Its own DEX trading volume over the past 30 days was approximately $2.24 billion, and perpetual contract trading volume was approximately $4.01 billion. Jupiter routes and aggregates liquidity across the entire Solana ecosystem while also operating its own products in trading, derivatives, and other businesses. The richer the liquidity provided by external protocols, the more opportunities the aggregator has to offer users better trade execution; and the more users become accustomed to entering the market through Jupiter, the more opportunities Jupiter's own products have to capture trading flow.
Uniswap wants to replicate this logic in the EVM ecosystem, with the difference being that it first gained an advantage in liquidity supply.
With Aggregator Hooks, Uniswap v4 brings external protocols' liquidity directly into its own trading paths, so users do not need to leave the Uniswap APP. If Aggregator Hooks can continuously improve quotes and execution experience, then in the future Uniswap will have the opportunity to control both liquidity supply and trading flow distribution.
Uniswap v4's Aggregator Hooks are not necessarily bad for other DEXs that provide liquidity. This is more like a win-win, because they can use Uniswap as a highly effective distribution channel and still profit from user trades; Uniswap, in turn, can complete its transformation from liquidity-providing infrastructure to a "routing layer."
However, the short-term impact of Uniswap v4 Aggregator Hooks on enhancing UNI's value capture capability may be limited.
Uniswap v4 Aggregator Hooks have only been live for a week, and neither official nor third-party data platforms separately monitor trades routed through Aggregator Hooks. Therefore, it is difficult to calculate how much trading volume Uniswap v4 Aggregator Hooks have routed and how many fees they have generated. However, data compiled by crypto blogger [@0xtunad](https://x.com/0xtunad/status/2113415036777693220?a=AxCJc2eB51hWCFAoxwo&s=20" \t "https://www.odaily.news/zh-CN/post/_blank") around the launch of Uniswap v4 Aggregator Hooks does offer some reference value.
They found that Uniswap v4 Aggregator Hooks completed their first trade as early as April this year. By the time of publication on October 22, they had completed 88,101 trades across three chains, with total trading volume reaching $2.85 billion. However, 85% of that came from Sky's LitePSM, namely swaps between USDC and USDS, for which Uniswap charged a fee of 0.
As a result, although Uniswap v4 Aggregator Hooks routed billions of dollars in trading volume over the past 6 months, the fees collected were only $2,059 (fee rate of 0.01% to 0.10% of trading volume), and all of these funds flowed into Uniswap's TokenJar contract.
The reason Uniswap does not charge fees on Sky's liquidity pools is very likely joint testing, since the officially announced launch date was October 22. But this also raises a key question: whether Uniswap v4 Aggregator Hooks can enhance UNI's value capture capability depends critically on whether it will turn on the fee switch for external high-volume pools.
The protocol fees charged by Aggregator Hooks are ultimately borne by users and have nothing to do with the other aggregated platforms. For some low-depth, low-volume pools, users will be willing to pay extra for convenience, but for high-volume pools, fee-sensitive users will not readily accept it, and these users are precisely the ones who trade most frequently.
Therefore, if Uniswap wants to attract these users, it may also refrain from turning on the fee switch for high-volume pools in the early stage of Aggregator Hooks, so the actual short-term impact on UNI's value capture capability is limited.