Uniswap Labs has launched DualPool, an open-source v4 hook developed in collaboration with Spark that enables market makers to earn lending yield on inventory held in automated market maker pools. The hook addresses a longstanding inefficiency in onchain liquidity provisioning: capital committed to AMM pools sits idle between trades, forgoing potential yield returns. DualPool solves this by storing pool inventory in ERC-4626 yield vaults and deploying liquidity just-in-time when swaps arrive.
- Hook Type: Uniswap v4 open-source hook
- Core Function: Holds liquidity in yield vaults between swaps, deploys to PoolManager during trades
- Fixed Pool Properties: Static fees, bound yield vaults, and standard PoolManager swap math
- Operator Controls: Pool pausing, liquidity distribution reshaping, deposit gating, emergency vault access severing
The hook operates through a four-step atomic cycle during each swap transaction. When a trade arrives, DualPool calculates the liquidity shortfall needed at the current price, withdraws only that amount from yield vaults, deploys concentrated liquidity positions according to the operator’s configured distribution, executes the swap through standard PoolManager math, and redeposits remaining capital back into vaults. The entire process completes within a single transaction, requiring no external keeper infrastructure.
DualPool targets professional market makers who operate pools and capture both swap fees and yield returns. Liquidity providers can join pools when operators permit outside deposits, earning proportional claims on assets and yield without active management. For stable pairs where fees are thin and lending yields can match or exceed pool fees, the hook addresses the historical tradeoff between earning swap fees or lending yield. Swappers and routers interact with DualPool like any standard Uniswap pool, with no changes to existing execution paths. The hook supports flexible liquidity shaping, allowing operators to adjust capital distribution across tick ranges to match market conditions, from tight bands for stable pairs to barbell structures that reserve one-sided depth for directional flow.
Three properties remain immutable at pool creation: the fee structure, the binding between pool currencies and yield vaults, and the underlying swap mathematics. These invariants preserve predictability for routers and prevent operator manipulation of core swap mechanics or LP-deposited capital. Between swaps, DualPool pools display minimal resident liquidity onchain, which can impair traditional routing estimates. To address this, the hook exposes a dedicated quoting surface that helps routers optimize execution without requiring onchain liquidity reads.
