Short summary: Uniswap v4’s singleton + hooks architecture (now live across 10+ chains) and Curve’s Stableswap/Cryptoswap/LLAMMA stack solve different market-making jobs; the right choice for DeFi teams hinges on gas optimization, MEV/LVR exposure, launch sequencing, and licensing constraints. This post maps the concrete architectural trade‑offs and shows how 7Block Labs designs, audits, and launches AMMs that hit ROI targets without slipping procurement or governance landmines.

Title: Automated Market Makers (AMMs): Curve vs. Uniswap v4 Architectures

Target audience: DeFi protocol founders, DEX teams, and liquidity-focused DAOs (keywords: Gas optimization, MEV mitigation, LVR, cross‑chain, audits)

Pain — A very specific headache you’re feeling right now

• You need to ship an AMM that doesn’t bleed LPs to LVR, can be extended for custom fees/oracles/limit orders, and is cheap enough to route through aggregators at scale. But:
  • Uniswap v4’s hooks are powerful and also easy to misuse (state drift, accounting deltas, reentrancy across callbacks). Shipping without airtight guardrails is asking for an incident. (docs.uniswap.org)
  • Curve’s stack is proven for stables and correlated assets, but parameterization (A, gamma, ma_time, fee_gamma) and peg machinery (Pegkeepers) can backfire under stress, as shown by crvUSD’s June 12, 2024 upward depeg. (docs.curve.finance)
  • Procurement adds friction: Uniswap v4 Core is under BUSL until June 15, 2027 (commercial use requires an Additional Use Grant), impacting forking/derivative strategies. (support.uniswap.org)

Agitate — Why this risk is material

• Missed milestones and budget blowups:
  • A single wrong assumption in a v4 hook (e.g., trusting “stale” deltas across before/after callbacks) can create silent value leakage that only appears under aggregator routing or multi-hop paths—usually after incentives drive TVL. That’s a re‑audit, a hotfix, and an L2 redeploy across 4–8 chains. (docs.uniswap.org)
  • On Curve, mis‑tuned v2 parameters (ma_time, allowed_extra_profit, adjustment_step) can throttle re‑pegs and fee curves at the exact moment you need liquidity depth, eroding LP APY and trader execution—then aggregators de‑prioritize your pools. The crvUSD Pegkeeper incident shows how “safety checks” can stall peg defense during spikes. (docs.curve.finance)
• Governance and GTM drag:
  • BUSL means you cannot commercially fork v4 core without a grant until 2027; teams that find this out late lose a quarter rewriting or negotiating grants. (support.uniswap.org)
  • Hook ecosystems are new; over 30% of community hooks reviewed by BlockSec exhibited vulnerabilities—expect a higher audit burden versus traditional pool templates. (gate.com)
• MEV/LVR exposure:
  • With concentrated liquidity and public mempools, you’ll pay a “hidden tax” via adverse selection. Without design features like batched clearing or well‑chosen fees, LP PnL degrades even when headline volume looks great. (arxiv.org)

Solution — 7Block methodology to ship, harden, and launch without surprises We structure DeFi AMM builds into a 90‑day liquidity engineering program aligned to gas optimization, MEV/LVR controls, and license/governance constraints.

1. Architecture decision (Curve vs. Uniswap v4), no generic theory—just the concrete fit

• Choose Uniswap v4 if you need:
  • Programmable hooks: custom fee logic, on‑chain limit orders, bespoke oracles, streaming/TWAMM‑style flows, or custom accounting that can even bypass v3’s concentrated curve. v4’s singleton PoolManager + flash accounting eliminates per‑pool contract deployments and reduces multi‑hop transfer overhead; pool creation is “state write” not “factory deploy.” Native ETH support removes WETH wrap gas. (docs.uniswap.org)
  • Modern infra: EIP‑1153 transient storage is live post‑Dencun, enabling “flash accounting” patterns in v4 and cheaper intra‑tx state. (blog.ethereum.org)
  • Liquidity bootstrapping with Continuous Clearing Auctions (CCA): uniform‑clearing over time, hooks‑compatible, optional ZK Passport (Aztec) for private, verifiable participation; auto‑seeds a v4 pool at the discovered price. (blog.uniswap.org)
• Choose Curve if you need:
  • Stable/pegged or correlated pairs that benefit from Stableswap or v2’s EMA‑recentered liquidity with dynamic fees (mid_fee, out_fee, fee_gamma). Great when you care about depth near the peg and automated re‑pegs via internal oracles. (docs.curve.finance)
  • Programmable stablecoin credit with soft liquidations: crvUSD’s LLAMMA bands convert collateral gradually instead of binary hard liquidations—powerful if you manage leverage risk and band width correctly. (docs.curve.finance)

1. Implementation hardening (Solidity/Vyper + ZK) with gas‑first design

• For v4 hooks:

  • We implement “flash‑accounting‑aware” arithmetic and delta assertions; every callback validates that internal balances net to the expected signed deltas before any external call. We apply access control so only the PoolManager can invoke hook entrypoints and use transient storage (TSTORE/TLOAD) for intra‑tx locks/context where appropriate. (docs.uniswap.org)

  • Example pattern (Solidity ≥0.8.24, Cancun EVM). This is illustrative (do not copy‑paste to prod without an audit):

    // SPDX-License-Identifier: BUSL-1.1
    pragma solidity ^0.8.24;
    
    interface IPoolManager {
        // minimal interface; use official types in prod
        function isPoolManager() external view returns (bool);
    }
    
    contract FeeRebateHook {
        address public immutable poolManager;
        // slot key for transient "reentrancy" guard
        bytes32 private constant TLOCK = keccak256("fee.rebate.hook.lock");
    
        constructor(address _pm) {
            poolManager = _pm;
        }
    
        modifier onlyPM() {
            require(msg.sender == poolManager, "not PoolManager");
            _;
        }
    
        // pseudo: beforeSwap callback
        function beforeSwap(bytes calldata /*key*/, bytes calldata /*params*/)
            external
            onlyPM
        {
            // transient lock: tload/tstore (EIP-1153)
            assembly {
                // if tload(TLOCK) != 0 revert
                if tload(TLOCK) { revert(0, 0) }
                tstore(TLOCK, 1)
            }
            // ... read deltas from calldata; compute fees/adjustments deterministically
        }
    
        // pseudo: afterSwap callback
        function afterSwap(bytes calldata /*key*/, int256 amount0Delta, int256 amount1Delta, bytes calldata /*params*/)
            external
            onlyPM
        {
            // assert sign conventions; zero-out transient lock
            require(amount0Delta <= 0 || amount1Delta <= 0, "unexpected deltas");
            assembly { tstore(TLOCK, 0) }
        }
    }
    

  • We also test against token edge cases (fee‑on‑transfer, rebasing, ERC‑777 hooks) and multi‑hop routing to avoid cross‑pool drift or griefing. (docs.uniswap.org)

• For Curve pools and crvUSD markets:
  • We calibrate v2 parameters (A, gamma, ma_time, allowed_extra_profit, adjustment_step) with adversarial backtests, then verify Pegkeeper/aggregator behavior under stress (including deviation‑band logic that stalled in the 2024 incident). LLAMMA bands are sized to your asset’s volatility to minimize soft‑liquidation erosion during chop. (docs.curve.finance)
• ZK modules where they move the needle:
  • If you bootstrap via CCA, we design and integrate the optional ZK Passport path (e.g., KYC‑gated private participation without revealing identity; proofs verified in‑hook or via module) and validate gas impacts versus public flows. (blog.uniswap.org)

1. Gas optimization and cost modeling (DeFi keyword)

• Uniswap v4:
  • Singleton PoolManager + native ETH + flash accounting reduces pool‑creation and multi‑hop costs; Uniswap Labs reports up to 99.99% cheaper pool creation vs. v2/v3 and lower swap gas for routers. We verify this for your specific paths on your target chains (Base/OP/Arbitrum/etc.) and size fee tiers accordingly. (blog.uniswap.org)
• Curve:
  • For stables, v2’s dynamic fee slope and EMA recentering reduce useless arb churn—often better “effective gas per unit volume” since fewer hops are needed to stay on‑peg. We simulate aggregator routes to confirm net user cost across pools. (docs.curve.finance)
• Ethereum context:
  • Post‑Dencun (Mar 13, 2024 mainnet), EIP‑1153 is live, so transient storage patterns are production‑safe on Ethereum and major L2s—this is key to the v4 gas model. (blog.ethereum.org)

1. MEV/LVR mitigation by design (not by wishful thinking)

• We implement one or more of:
  • Batch/auction‑style entry points (e.g., CCA for launches) to reduce sniping and adverse selection at T0. (blog.uniswap.org)
  • Fee/width controls that reflect volatility and block‑time math; we reference recent LVR research to set spreads that reduce expected arbitrage extraction for your pair’s sigma and chain’s block interval. (arxiv.org)
  • Where justified, private orderflow or intents routing for certain flows (e.g., UniswapX) so takers price against the honest clearing price rather than competing bots. (blog.uniswap.org)

1. Security audit path for hooks and pools

• v4 hook security is categorically different from pool template audits. We apply:
  • Strict PoolManager‑only callback gating and storage isolation per pool key (no cross‑pool bleed). (quillaudits.com)
  • Numerical stability reviews (Q96/128 fixed‑point, rounding direction, piecewise curve continuity).
  • Upgradeability controls (if used): timelocked multisig, OZ UUPS/Transparent proxies only.
  • Scenario fuzzing: multi‑hop aggregator routes, nested callbacks, and tokens with non‑standard behaviors. (docs.uniswap.org)
• Curve side:
  • Parameterization reviews (A, gamma, fees) plus Pegkeeper stress tests against oracle divergence and regulator toggles; we incorporate lessons from the June 2024 crvUSD depeg and subsequent governance actions. (research.llamarisk.com)

Curve vs. Uniswap v4 — crisp, technical trade‑offs you can act on

• Gas and state layout
  • v4: Singleton PoolManager, flash accounting with EIP‑1153 transient storage; native ETH support. Pool creation = state write (no per‑pool deploy). Better for complex multi‑hop trades and hook‑driven logic. (docs.uniswap.org)
  • Curve: Each pool is a contract; v2 adjusts around EMA midprice and uses dynamic fees to deter imbalances, which often means fewer rebalances on stable pairs—great for router preference on stable routes. (docs.curve.finance)
• Extensibility
  • v4: Hooks can implement custom AMMs, fee policies, limit orders, oracles. Power with sharp edges; increased audit surface. (docs.uniswap.org)
  • Curve: Template‑driven pool creation; LLAMMA enables lending with soft liquidation bands; parameter tuning is your throttle. (docs.curve.finance)
• Launch and GTM
  • v4: CCA lets you run on‑chain continuous clearing and automatically seed a v4 pool at the discovered price; optional ZK Passport module. (blog.uniswap.org)
  • Curve: For stables/correlated assets, you can prioritize deep metapool integrations and ensure Pegkeeper coverage for your main pairs (and regression tests that the regulator won’t block provisioning during spikes). (research.llamarisk.com)
• Licensing/procurement
  • v4 Core: BUSL with commercial restrictions until June 15, 2027; exceptions via Additional Use Grants. Do not plan to fork commercially without this being resolved. (support.uniswap.org)
  • Curve: Open repos but mixed licensing across components; most teams integrate via permissionless factories or deploy new pools rather than forking the entire stack.

Practical examples — what we ship in sprints

• Example A: v4 “dynamic fee + oracle sanity” hook for volatile pairs
  • Hooks: beforeSwap reads a rolling EMA price (Cross‑checked with an external oracle for sanity), sets a fee within a target band proportional to imbalance and measured volatility; afterSwap asserts deltas and rebates a portion to LPs if spreads exceeded a cap in low‑vol regimes.
  • Gas optimization: use transient storage for per‑tx context flags and to avoid persisting temporary counters; pack persistent parameters into a single storage slot; prefer unchecked arithmetic where range‑bounded; no redundant SSTORE. (docs.uniswap.org)
  • Risk controls: PoolManager‑only gating; no external calls inside beforeSwap; if external oracles are used, do them in afterSwap with revert‑safe fallbacks and snapshot‑based math to avoid drift. (docs.uniswap.org)
• Example B: Curve v2 stable pool tuning + Pegkeeper tests for a USD‑pair
  • Parameters: set ma_time to match your redemption cadence; fee_gamma slope shaped so imbalances move fees up quickly during volatility; allowed_extra_profit tuned to avoid oscillatory re‑pegs.
  • Peg defense: simulation where spot vs. EMA diverges and the regulator doesn’t stall; add monitoring that alerts if deviation bands prevent provisioning for >N blocks. (docs.curve.finance)
• Example C: Liquidity launch via CCA → auto‑seeded v4 pool
  • Configure duration, starting price, tranche cadence; optional ZK Passport module for privacy‑preserving allowlists.
  • At close, proceeds seed a v4 pool at the clearing price; we publish a post‑mortem with execution stats and a risk disclosure for LP incentives. (blog.uniswap.org)

Emerging best practices we’re applying in 2026

• For Uniswap v4 hooks:
  • Treat every callback as reentrant; snapshot state early, assert deltas late; never trust sequence order if you call out. Prefer immutability; only use upgradeability with timelock + formal storage layout checks. Add hook‑level rate limits or fee clamps to cap tail risk during oracle outages. (docs.uniswap.org)
  • Maintain strict per‑pool storage isolation keyed by poolID, even if the hook “supports multiple pools”—BlockSec found many cross‑pool state collisions in community code. (gate.com)
• For Curve:
  • Parameter governance must be paired with chaos testing: simulate peg shocks where EMA and spot diverge and verify your Pegkeeper still provides; otherwise, escalation runbooks are mandatory. LLAMMA band sizing should reflect realized volatility to avoid costly soft‑liquidation churn in chop. (research.llamarisk.com)
• LVR‑aware fee policies:
  • Use recent closed‑form approximations under constant block times to set spreads that reduce arbitrage probability per block for your sigma; empirically validate versus your pair’s tick volatility. (arxiv.org)

Proof — GTM metrics you can hold us to

• Time to liquidity:
  • With CCA, teams can move from “token deploy” to “pool seeded at discovered price” in one on‑chain flow, eliminating weeks of OTC price discovery and reducing sniping at T0. We baseline “price error vs. day‑3 VWAP” as a success metric. (blog.uniswap.org)
• Cost to operate:
  • v4 pool creation is orders of magnitude cheaper (up to 99.99%) than v2/v3; multi‑hop swap gas falls thanks to singleton + flash accounting and native ETH. We measure blended cost per routed trade across your principal routes on target chains. (blog.uniswap.org)
• LP economics:
  • On Curve, correct v2 parameterization improves depth near peg while dynamic fees monetize imbalance; on v4, hooks that clamp spreads under low sigma reduce needless LVR bleed. We track realized LP APY minus gas, compared to a v3‑style baseline and to model‑predicted LVR. (docs.curve.finance)
• Compliance and procurement readiness:
  • For v4, we plan around BUSL constraints early—either target an Additional Use Grant or implement a “clean room” design that avoids restricted components; we document the path to 2027 MIT transition. (support.uniswap.org)

How we engage (and where we plug into your roadmap)

• Architecture and launch design:
  • We scope whether v4 hooks or Curve pools are the right first ship, then define gas and MEV/LVR targets with chain selection.
  • Relevant: 7Block’s custom smart contract and DEX engineering, from market microstructure to launch tooling:
    • smart contract builds and reviews: smart contract development
    • DEX/DeFi buildouts: DeFi development services, DEX development services
    • gas‑aware integrations: blockchain integration, cross‑chain solutions
    • end‑to‑end launches: web3 development services, blockchain development services
• Security and audits:
  • Hook/pool audits, invariant proofs, and scenario fuzzing; we align to v4’s official security framework and Curve’s documented failure modes.
  • Relevant: security audit services
• Capital formation and incentives:
  • If you’re raising or designing emissions for early liquidity, we model emissions vs. LVR and help structure a fair launch with CCA or tailored mechanisms.
  • Relevant: fundraising

Appendix — Crisp architectural notes and references you can share with your team

• Uniswap v4
  • Live since Jan 31, 2025; launched across Ethereum, Polygon, Arbitrum, OP Mainnet, Base, BNB Chain, Blast, World Chain, Avalanche, Zora; nine audits; $15.5M bug bounty. Pool creation up to 99.99% cheaper; UniswapX routing integrates automatically. (blog.uniswap.org)
  • Hooks, singleton PoolManager, flash accounting over EIP‑1153; dynamic fees, native ETH, custom accounting. (docs.uniswap.org)
  • CCA liquidity launch protocol; optional ZK Passport; auto‑seeds v4 pool at clearing price. (blog.uniswap.org)
  • Licensing: BUSL; commercial restrictions until June 15, 2027; exceptions via Additional Use Grants. (support.uniswap.org)
• Curve (Stableswap, v2 “Cryptoswap”, crvUSD/LLAMMA)
  • Stableswap invariant; v2 introduces EMA‑centered price scaling, dynamic fees (mid_fee/out_fee/fee_gamma), and parameterized breadth/depth (A, gamma). (docs.curve.finance)
  • LLAMMA: banded soft liquidations for crvUSD lending; careful band sizing is required to avoid excessive churn. (docs.curve.finance)
  • Incident to study: June 12, 2024 crvUSD upward depeg; Pegkeeper regulator deviation check delayed intervention; subsequent governance/process fixes proposed. (research.llamarisk.com)
• Ethereum infra context
  • Dencun mainnet activation (Mar 13, 2024) included EIP‑1153 transient storage; critical for v4’s flash accounting and modern gas patterns. (blog.ethereum.org)

Bottom line

• If you need programmable market structure (custom fees, oracles, limit orders, specialized curves) and can handle hook‑level rigor, Uniswap v4 is the right canvas—just respect BUSL and the security framework. If you need predictable depth and fees around a peg or correlated assets, Curve’s v2 + Pegkeeper stack remains the workhorse—provided you chaos‑test Pegkeepers and LLAMMA parameters under stress.

CTA (DeFi): Book a DeFi Liquidity Engineering Call

References

• Uniswap v4 docs: singleton, hooks, flash accounting, security; launch posts and CCA docs. (docs.uniswap.org)
• EIP‑1153 and Dencun activation (EF blog, EIP‑7569). (eips.ethereum.org)
• Curve docs (Stableswap, v2 parameters), LLAMMA and crvUSD incident report/governance thread. (docs.curve.finance)
• LVR/MEV literature and JIT liquidity analyses. (arxiv.org)

Related 7Block solutions you can tap today

• AMM and DEX builds: dApp development, DEX development services
• DeFi protocol engineering: DeFi development services
• Core smart contracts: smart contract development
• Bridges and cross‑chain: blockchain bridge development, cross‑chain solutions
• Security and audits: security audit services
• Platform integration and delivery: blockchain integration, web3 development services, blockchain development services
• Fundraising and GTM: fundraising