@delleonmcglone.eth
Another insight from my hook research:
In most stablecoin pools, arbitrage during deviation is extractive.
LPs take the inventory risk.
Arbs take the profit.
That’s a design choice — not a law of nature.
If fees are asymmetric, you can:
- Incentivize peg-restoring flow
• Penalize peg-worsening flow
• Redirect deviation profits back to LPs
Directional incentives turn “arb extraction” into “LP compensation.”
Hooks make that programmable.
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