@princesinha
Uniswap V3 made LPs micromanage liquidity. V4 flips the script - hooks automate fee adjustments, LP protection, and capital efficiency.
This simulation shows V4 pools matching V3’s liquidity depth with:
– Less capital required
– Lower impermanent loss ▼
– 2x faster reaction to volatility
Why no hooks in V3? Early AMMs prioritized predictability:
→ Static fees = predictable LP returns
→ No custom hook attack surfaces
→ Easier LP coordination
V4 makes multiple V3 pools obsolete.
Simulation parameters: 0.1-0.6% dynamic fees, 1s update cycles.
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