Quick Update: Uniswap v4 is here, and it’s shaking things up with a cool singleton and hooks setup! Plus, it's already launched on more than 10 different chains--pretty impressive, right? On the other hand, Curve has its Stableswap, Cryptoswap, and LLAMMA stack all set up to handle various market-making requirements. Choosing the best solution for your DeFi team really comes down to a few key things. You’ll want to think about gas optimization, your level of exposure to MEV and LVR, your launch strategy, and any licensing considerations. All of these factors can influence your decision! In this post, we’re going to take a closer look at some of the architectural trade-offs involved. We’ll show you how 7Block Labs goes about creating, auditing, and launching Automated Market Makers (AMMs). Our focus is on hitting those ROI targets while also avoiding any issues related to procurement and governance. Let's get into it!

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

If you’re getting into Automated Market Makers (AMMs), you’re definitely going to come across two big names: Curve and Uniswap v4. Both of these have their own distinct designs, and they serve different purposes in the DeFi world. Alright, let’s dive into what really makes them unique!

What Are AMMs?

Before we dive into the comparisons, let's take a moment to quickly go over what AMMs are all about. Basically, AMMs, or Automated Market Makers, are smart contracts that let folks trade cryptocurrencies without relying on a typical order book. It's a more streamlined way to get your trades done! Instead of just connecting buyers and sellers like traditional setups, they actually use liquidity pools packed with tokens. Basically, this means anyone can jump in and provide liquidity, and there’s a chance to earn some fees along the way.

The Architecture of Curve

Focus on Stablecoins

Curve is built just for trading stablecoins. The design focuses on cutting down slippage and boosting efficiency when swapping stablecoins. Here’s how it works:.

• Stableswap Curve Algorithm: So, this cool algorithm is designed to keep slippage really low when you're swapping assets that should ideally have the same value, like various stablecoins. It's pretty nifty!
• Liquidity Pools: So, Curve has this cool setup called liquidity pools. Basically, if you're a liquidity provider, you can earn rewards based on how much you chip in. It's a neat way to get involved and make some returns!
• Single Curve Pool: So, here's the deal: each pool is specially designed for a particular pair of tokens. This setup helps users snag the best prices possible!

Incentives for Liquidity Providers

So, if you're a liquidity provider on Curve, you can actually make some money by earning fees from the trades happening in your pools. They can also take advantage of CRV tokens, which you can stake to earn some extra rewards. It's a pretty neat way to boost your returns!

The Architecture of Uniswap v4

Generalized Trading

Uniswap v4 really broadens its horizons. It lets you trade a bunch of different tokens, which means it can handle a wider variety of use cases. Here’s the scoop:.

• Concentrated Liquidity: So, Uniswap v4 has this cool feature that sets it apart from the usual model. It allows liquidity providers to focus their funds right at certain price points, which is a game changer! So, basically, this means they can rake in more fees without needing to put in as much capital.
• Flexible Pools: Each pool has the ability to function under various conditions, giving you a ton of flexibility when it comes to your trading strategies. It's all about finding what works best for you!

Advanced Features

One really cool thing about Uniswap v4 is its twap (time-weighted average price) oracles. So, what this really does is give users reliable price data for certain time periods. This is really handy for traders who want to steer clear of any price manipulation.

Key Differences

Check out this handy comparison table that lays out the key differences between Curve and Uniswap v4:

Conclusion

When it comes to picking between Curve and Uniswap v4, it really just depends on what you need. If you’re really into trading stablecoins, then Curve could be just the place for you! If you’re after some flexibility and want to explore a wider variety of token trades, Uniswap v4 is definitely the way to go. It’s got you covered! Both architectures have their own unique strengths, so don’t rush it--take your time to dive in and figure out which one really suits your needs!

That specific headache you’re dealing with right now

Hey there! So, it sounds like you want to launch an AMM that keeps LPs from getting hit hard with LVR. That’s a solid goal! You’re looking for something that’s customizable, right? Think fees, oracles, and limit orders. And let’s not forget, it’s got to be budget-friendly for routing through aggregators at scale. But here’s the catch:.

Uniswap v4 brings some really impressive hooks to the table, but I’ll be honest, they can definitely be a bit tricky to navigate! Watch out! If you're not paying attention, issues like state drift, accounting deltas, and reentrancy in callbacks can really cause some serious headaches. If you launch without some solid safety measures in place, things could definitely go sideways pretty quickly. If you’re looking for more details, definitely take a peek at the Uniswap docs. They've got a ton of useful info there!

So, here’s the deal with Curve’s framework: it really shines when it comes to stablecoins and assets that move together. However, there’s a bit of a hiccup when we start talking about things like parameterization (you know, A, gamma, ma_time, fee_gamma) and the whole peg mechanics, especially with those Pegkeepers in the mix. You know how things can really go sideways when the pressure's on? Just look at what happened with crvUSD's sudden depeg on June 12, 2024. It was quite the rollercoaster! Hey, if you’re curious about the nitty-gritty details, check out Curve's documentation here. It's got everything you need to know!

Oh, and we can't overlook the procurement problems either! So, just a heads up: Uniswap v4 Core is protected under the BUSL until June 15, 2027. That basically means if you’re considering creating a fork or any derivatives, you’ll need to get an Additional Use Grant. Just something to keep in mind! If you're looking for more details, just head over to the Uniswap support page here. They’ve got all the info you need!

• Hitting those milestones? Not quite. And don’t even get me started on the budget overruns! Just one little mistake in a v4 hook--like counting on those “stale” deltas from the before/after callbacks--can really lead to some sneaky value leaks. It's surprising how easily that can happen! You’ll typically run into this problem when you're working with aggregator routing or multi-hop paths. It often pops up after incentives have already boosted your Total Value Locked (TVL). When this situation comes up, you're basically in for a re-audit, some quick fixes, and maybe even an L2 redeploy spanning about 4 to 8 chains. It sounds like quite the task, right? If you want to learn more about it, go ahead and check it out here: Uniswap Docs. It’s definitely worth a look! Hey there! So, when you're working with Curve, it's super important to get those v2 parameters right--stuff like ma_time, allowed_extra_profit, and adjustment_step. If you don’t, you might end up throttling your re-pegs and fee curves right when you need that liquidity depth the most. It's like shooting yourself in the foot when you really need to be running! If this happens, you might see a decline in your LP APY and how efficiently trades are executed. And before you know it, those aggregators might just start overlooking your pools. The crvUSD Pegkeeper incident really shows how those so-called "safety checks" can sometimes get in the way of keeping your peg stable during those crucial spikes. It's a reminder that what we think is protecting us can actually be a bit of a hindrance when the pressure's on. If you want to dive deeper, check this out: (docs.curve.finance). You'll find all the info you need!
• Governance and Go-To-Market (GTM) challenges: Thanks to BUSL, you're not able to commercially fork the v4 core without getting a grant until 2027. Teams that discover this too late could end up burning an entire quarter just going back and forth, rewriting, or negotiating those grants. Oh man, that’s a hard lesson to wrap your head around! If you want to dive into the details, check this out: (support.uniswap.org). The hook ecosystems are still pretty new, and it turns out that over 30% of the community hooks that BlockSec checked out actually had some vulnerabilities. Get ready for a bit more of an audit workload than what you usually deal with when using the standard pool templates. If you want to dive deeper into this topic, check it out here: gate.com. It's got some really interesting insights!
• MEV/LVR exposure: So, when you're dealing with concentrated liquidity and public mempools, there's a pretty good chance you'll run into what folks call a “hidden tax.” This happens because of something called adverse selection. It's like a sneaky fee that can catch you off guard! If you’re not using smart design features like batched clearing or picking your fees carefully, you might find your LP profit and loss taking a nosedive-- even if your overall volume looks really good on paper. If you want to explore this topic a bit more, feel free to check it out here: (arxiv.org). Happy reading!

7Block Methodology to Ship, Harden, and Launch Without Surprises

At 7Block, we’ve got a cool way of tackling our DeFi AMM projects. We’ve simplified it into a 90-day program focused on liquidity engineering. It's all about making the process smooth and efficient! This program is all about making gas usage better, keeping an eye on MEV and LVR controls, and tackling any licensing or governance stuff that pops up.

1. Making a Call on Architecture (Curve vs. Uniswap v4): It's All About the Real Fit, Not Just Theoretical Ideas.

Go with Uniswap v4 if you’re looking for:

• Programmable hooks: Basically, this lets you whip up your own fee logic, set up limit orders right on the chain, craft some one-of-a-kind oracles, manage those streaming or TWAMM-style flows, or even dive into some custom accounting that goes further than what v3’s concentrated curve can do. It’s all about giving you more freedom to tailor things to your liking! With v4's singleton PoolManager and flash accounting, you can skip deploying contracts for every single pool. This really helps reduce the hassle of multi-hop transfers! Also, setting up a pool is as easy as doing a “state write” rather than going through a full “factory deploy.” Plus, with the native ETH support, you can totally avoid the hassle of wrapping ETH into WETH and dealing with those annoying gas fees. Check it out here.
• Modern infrastructure: The launch of EIP-1153 transient storage is a total game-changer, and it’s officially up and running after the Dencun event! This really opens the door for those cool "flash accounting" features in v4 and makes intra-transaction state way more affordable. If you’re looking for more info, just check it out here.
• Liquidity Bootstrapping with Continuous Clearing Auctions (CCA): This neat feature helps you maintain a steady clearing process over time. Plus, it plays nicely with hooks and even includes an optional ZK Passport from Aztec, so you can join in without compromising your privacy while still keeping things verifiable. Oh, and it sets up a v4 pool automatically at the price that’s been figured out! If you want to dive deeper into this, check it out here.

Choose Curve if you’re after:

• Stable or pegged pairs: This is where Curve really stands out! With features like Stableswap and the v2’s EMA-recentered liquidity, they’ve made things super flexible with dynamic fees, including mid_fee, out_fee, and fee_gamma. It's a game changer! This is just what you need if you're looking for that added depth right by the peg, plus seamless automated re-pegs with the help of internal oracles. If you're looking for more information, you can check it out here.
• Programmable stablecoin credit with gentle liquidations: Thanks to crvUSD's LLAMMA bands, you can convert your collateral bit by bit instead of facing those harsh hard liquidations we usually see. It’s a much smoother experience! This strategy can really pay off if you're careful about managing leverage risk and tweaking your bandwidth smartly. Get the details here.

Implementation Hardening (Solidity/Vyper + ZK) with Gas-First Design

For v4 Hooks:

Hey there! We’ve rolled out some awesome new features, including “flash-accounting-aware” arithmetic and delta assertions. Check them out! So, every time a callback happens, it checks to see if the internal balances line up with the signed deltas we expect. Only after that does it go ahead and make any external calls. Also, we’ve got access control in place, so only the PoolManager can access those hook entry points. Plus, we make use of transient storage (you know, TSTORE/TLOAD) for things like intra-transaction locks or whenever it makes sense to have some context handy. If you want to dive into the details, feel free to check it out here!

Sure thing! Here’s a quick example pattern for you. Just make sure you're using Solidity version 0 or higher. 8. 24 and Cancun EVM). Hey, just a quick heads up: this is meant for example purposes only, so please don’t just go ahead and copy and paste this into your production environment without getting it checked first!

// Example code
pragma solidity >=0.8.24;

contract Example {
    // Your code here
}

```solidity
// 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 take the time to test those tricky edge cases--things like fee-on-transfer, rebasing, and ERC-777 hooks. Plus, we dive into multi-hop routing to ensure everything runs smoothly and to prevent any issues like cross-pool drift or griefing. Feel free to dive into more info here.

• So, if we’re diving into Curve pools and the crvUSD markets, here’s what you need to know: We really put those v2 parameters (A, gamma, ma_time, allowed_extra_profit, adjustment_step) to the test with some intense backtesting. It’s a bit challenging, but it helps us nail down the best settings! Next up, we decided to put the Pegkeeper and aggregator to the test under some pressure. We wanted to see how they would hold up, especially since the deviation-band logic had some hiccups during that 2024 incident. The LLAMMA bands are set based on how volatile your assets are, which can really help minimize those soft liquidations when the market gets a bit wobbly. If you're looking for more details, you can check it out here.
• Alright, let’s dive into the ZK modules that truly stand out and make an impact.
• If you kick things off with CCA, we’ll get the optional ZK Passport path all set up for you. Basically, this means you can get involved privately through KYC gating without having to show your identity. Also, we'll take a look at how this impacts gas prices in relation to what’s happening with public flows. Check out all the juicy details here!

3) Gas Optimization and Cost Modeling (DeFi Keyword)

• Uniswap v4: The new Singleton PoolManager, along with native ETH and flash accounting, makes it super easy to create pools and helps keep those multi-hop costs low. Hey there! So, Uniswap Labs recently shared that you can now create a pool with up to 99 different tokens. How cool is that? You’ll be saving a whopping 99% compared to versions 2 and 3! On top of that, you'll notice those swap gas fees for routers are going to be a lot lower too. Let's check out your specific routes on those target chains like Base, OP, Arbitrum, and so on, and we'll tweak the fee tiers as needed. (Uniswap Blog).
• Curve: So, when we talk about stablecoins, v2 really nails it with its dynamic fee slope and EMA recentering. These features do a great job at cutting down on all that unnecessary arbitrage hustle. This usually results in a better “effective gas per unit volume” because you don’t need to make as many hops to keep everything balanced. We can totally run some simulations on aggregator routes to verify the net user cost for different pools. (Curve Docs).
• Ethereum Context: Hey there! So, with the post-Dencun update rolling out on March 13, 2024, EIP-1153 has officially gone live. This is a game-changer because it means that transient storage patterns are now stable for use in production on Ethereum and the big Layer 2s. Exciting times ahead! This update is really crucial for the v4 gas model. (Ethereum Blog).

1. Designing for MEV/LVR Mitigation: It's More Than Just Hoping for the Best.

• We always try to use one or more of these strategies:
• Batch/Auction-Style Entry Points: You might want to consider using Continuous Clearing Auctions (CCA) for your launches. It's a great way to approach things! This really helps us minimize sniping and sidestep any issues with adverse selection right from the start. (blog.uniswap.org).
• Fee/Width Controls: When it comes to setting fees, we really consider how wild the market can be and the block-time math. Let’s dive into some of the latest LVR research! By leveraging this info, we can set up spreads that are designed to keep any potential arbitrage opportunities in check. We’ll consider factors like your pair’s sigma and the block interval of the chain to make it work. Take a look at this: (arxiv.org). You might find it interesting!
• Private Order Flow or Intent Routing: Whenever it makes sense, we’ll tap into private order flow for specific transactions, such as with UniswapX. This way, takers can focus on the fair clearing price rather than battling it out with competing bots. (blog.uniswap.org).

1. Security Audit Trail for Hooks and Pools.

When we talk about v4 hook security, it’s a totally different story from checking out pool templates. So, here’s what we’re all about: We've set up some solid protection with PoolManager-only callback gating and made sure there's storage isolation for each pool key. This basically means there's zero chance of any crossover between pools. Take a look at this: quillaudits.com. It's definitely worth your time!

• We also take a closer look at numerical stability, checking out things like Q96/128 fixed-point numbers, how we handle rounding, and ensuring that our curves remain smooth and continuous. When it comes to upgradeability controls (if we're actually using them), we go for timelocked multisig. Plus, we're sticking with either OZ UUPS or Transparent proxies. We also dive into scenario fuzzing, where we throw in some interesting tests. For example, we look at multi-hop aggregator routes, try out nested callbacks, and mess around with tokens that don’t stick to the usual script. It's a pretty cool way to see how things hold up under different conditions! If you’re looking for more info, just head over to this page: docs.uniswap.org. It’s got all the details you need!
• So, when it comes to the Curve side of things... We dive into parameterization reviews, where we take a closer look at A, gamma, and fees. Plus, we run some stress tests with Pegkeeper to see how everything holds up against things like oracle divergence and those tricky regulator toggles. For sure, we picked up a few lessons from the crvUSD depeg issue back in June 2024 and the governance actions that followed. Check out the full findings right here: (research.llamarisk.com). You’ll find a ton of insights worth exploring!

Curve vs. Uniswap v4 -- Crisp, Technical Trade-offs You Can Act On

• Gas and State Setup.
• v4: Alright, so you've got this Singleton PoolManager in the mix, and on top of that, we've got flash accounting from EIP-1153 to handle those temporary storage needs. Pretty cool, right? Guess what? It even supports native ETH! Creating a pool is super easy too--it's just a simple state write, so you don’t have to go through the hassle of deploying a new contract for every single pool. How cool is that? This setup really stands out when it comes to handling those tricky multi-hop trades and the clever hook-driven logic. Check it out here.
• Curve: Every pool operates as a separate contract. In version 2, the platform shifts focus to the EMA midprice and uses flexible fees to help maintain balance. What this usually means is that there are fewer rebalances on stable pairs, which makes them a great option for handling stable trades. Learn more here.
• Extensibility
• v4: With v4, you've got the ability to use hooks for building your own custom AMMs. Plus, you can adjust your fee policies, set up limit orders, and even bring in oracles if you want. It's all about making things fit your style! It's really about tapping into some amazing tech, but don't forget that it also means there's a bigger area to keep an eye on for audits. Dive deeper here.
• Curve: They’ve got this cool way of letting you create pools using templates, which makes everything a lot easier. Plus, with LLAMMA, you can set up lending that features these handy soft liquidation bands. Tweaking those parameters is like your secret sauce for getting everything just right. More details available here.
• Launch and GTM
• v4: Thanks to Continuous Clearing Auctions (CCA), you can now manage on-chain continuous clearing with ease. Plus, it lets you kickstart a v4 pool right at the price you uncover! Oh, and by the way, there's this cool optional feature called the ZK Passport module. If you want the complete details, check it out here!
• Curve: If you're dealing with stable or closely correlated assets, it's a good idea to dive into deep metapool integrations. Don't forget to secure Pegkeeper coverage for your primary pairs! And just to be safe, run some regression tests to make sure the regulators won't throw a wrench in your plans during those hectic market spikes. More info here.
• Licensing/Procurement
• v4 Core: So, here's the deal--it’s running under BUSL, which means there are some commercial restrictions in place until June 15, 2027. Just a heads up--if you’re considering going for a commercial fork, remember there are some exceptions through Additional Use Grants. It’s worth keeping in mind! If you want all the juicy details, just click here. You'll find everything you need!
• Curve: They've got open repositories, but just a heads up--you're going to see different licensing for the various components. It's a bit of a mixed bag! These days, a lot of teams really like to connect using permissionless factories or set up new pools rather than going through the hassle of forking the whole stack. It’s just a simpler way to get things rolling!
• Example A: v4’s got this cool “dynamic fee + oracle sanity” feature for those wild and unpredictable pairs.
• Hooks: So, the beforeSwap function has got this rolling EMA price it checks out (and just to be safe, we match it up with an external oracle). It then adjusts a fee to make sure it stays within a certain target range, depending on how imbalanced things are and how much the market is bouncing around. So, what happens next is that afterSwap takes a look at the deltas. If it finds that the spreads exceed a certain limit during those quieter times, it gives some of that extra back to the liquidity providers.
• Gas optimization: We’re all about efficiency here! Instead of hanging onto temporary counters, we use this neat trick with temporary storage for context flags for each transaction. Plus, we bundle up those persistent parameters into just one storage slot, which is super helpful. And when it’s safe to do so, we go with unchecked arithmetic to streamline things even further. We also make sure to avoid any extra SSTORE operations that aren't needed. (docs.uniswap.org).
• Risk Controls: So, here’s the deal: we’ve set it up so only PoolManager has access. We aren’t allowing any outside calls before the swap happens. When it comes to external oracles, we’ve got a solid plan in place. We handle those during afterSwap and make sure to use safe fallback options and some clever math that relies on snapshots to keep everything in check and avoid any drift. (docs.uniswap.org).
• Example B: We're tweaking the Curve v2 stable pool and running some tests with the Pegkeeper for a USD pair.
• Parameters: Make sure to adjust the ma_time so it matches when you’re looking to redeem. Also, tweak the fee_gamma slope so that any imbalances really ramp up those fees quickly when there’s some market volatility. We’ve tweaked the allowed_extra_profit a bit to help stop any back-and-forth re-pegging. So, here’s the deal with our peg defense: we do these simulations to see what happens when the spot price strays away from the EMA. Even if the regulator doesn't hit the pause button, we’ve set up monitoring that keeps an eye on things. If it looks like the deviation bands are stopping us from provisioning for more than N blocks, we get an alert. It's all about staying on top of it! (docs.curve.finance).
• Example C: We kicked off liquidity through CCA, which automatically filled up the v4 pool. Okay, so first you’ll want to figure out how long you want the duration to be, set a starting price, and decide how often you want the tranches to happen. And if you’re interested in keeping those allowlists under wraps, there's a neat optional ZK Passport module you can check out!
• So, when we finish everything up, the profits will go into starting a v4 pool at the clearing price. We'll be putting together a post-mortem once everything wraps up, which will include execution stats and a rundown of any risks involved. This way, we can make sure that LP incentives are crystal clear! (blog.uniswap.org).

Emerging Best Practices We're Applying in 2026

• About Uniswap v4 Hooks:

• Always keep in mind that any callback could potentially be reentrant. Go ahead and snap a photo of your state now, and you can save those in-depth checks for later. Hey, just a heads up--when you’re making those external calls, it’s best not to depend on the order of sequences. It’s usually a good idea to stick with immutability. Only think about making things upgradeable if you’ve got a timelock set up and you’ve really taken a close look at your storage layout. You might want to consider putting some rate limits or fee clamps right at the hook level. It could really help you manage risk when those pesky oracle outages hit. (docs.uniswap.org).

Make sure to keep your per-pool storage completely separate. Use the poolID as your key to help with that. Hey there! So, even if your hook looks like it's doing great in different pools, BlockSec discovered quite a few cross-pool state collisions in the community code. It’s definitely a good idea to play it safe and tread carefully! You can check out more details here.

• For Curve:

It's super important to combine parameter governance with chaos testing. They really go hand in hand! Give it a shot and run some simulations of peg shocks where the EMA and spot price start to drift apart. This will help you see if your Pegkeeper is still holding up and doing its thing. If things aren't looking good, you'll want to have those escalation runbooks all set and ready to roll. Don’t forget to adjust your LLAMMA band sizes based on the actual market volatility. This way, you can avoid those costly soft-liquidation churns when the market gets a bit bumpy. It’s all about keeping your costs down and staying smart during those choppy times! (research.llamarisk.com).

• Understanding LVR-Aware Fee Policies:

• Check out those new closed-form approximations with constant block times to help you nail down your spreads. This really helps reduce the chances of arbitrage happening per block for your sigma. Don't forget to back this up with actual data when you compare the tick volatility of your pair! (arxiv.org).

GTM metrics you can hold us to

• Time to liquidity:
  With Continuous Clearing Auctions (CCA), teams can effortlessly transition from "deploying tokens" to "having their pool filled at the price we found" all in one smooth on-chain process. It's really convenient! Basically, we’re skipping all those weeks of trying to figure out prices on our own and cutting down on those sneaky last-minute bids right at the start. We think of "price error versus day-3 VWAP" as a really good success measure. (blog.uniswap.org).
• Cost to operate:
  Setting up a v4 pool is super affordable--it can cost as little as 1% of what you'd normally expect, so we're talking about saving up to 99%! Hey there! We've cut costs by a whopping 99% compared to v2/v3! And that's not all--thanks to our awesome singleton and flash accounting, plus some native ETH magic, the expense for multi-hop swap gas is going down too. Pretty exciting stuff, right? We keep an eye on the average cost for each trade you route along your main paths on the target chains. (blog.uniswap.org).
• LP economics:
  When you're on Curve, nailing those v2 settings really helps improve the depth close to the peg. Plus, with dynamic fees in play, you can take advantage of any imbalances and make some extra profit. In version 4, we've introduced some cool hooks that clamp down on spreads when they’re under low sigma. This really helps in reducing any unnecessary LVR bleed! We keep an eye on the actual LP APY after accounting for gas fees and compare that to a baseline similar to v3. We also look at the predicted LVR from our models. (docs.curve.finance).
• Getting Ready for Compliance and Procurement: For version 4, we're jumping on those BUSL constraints right from the start. We're thinking about going after an Additional Use Grant or maybe even creating a "clean room" design to avoid any restricted components. We've put together a record of how we're planning to make the transition to MIT in 2027. (support.uniswap.org).

How We Engage (and Where We Fit Into Your Roadmap)

• Architecture and Launch Design: Alright, let’s dive in and see if v4 hooks or Curve pools are the way to go for us. Sounds like a solid starting point! After that, we’ll figure out our gas and MEV/LVR targets, plus pick the right blockchain to go with them. So, here's what we've got for you: 7Block is all about custom smart contracts and DEX engineering. We cover everything from market microstructure to the tools you need to get launched.
• Creating and reviewing smart contracts: Check out our smart contract development services!
• DEX/DeFi Projects: Check out our DeFi development services and DEX development services if you're looking to dive into the exciting world of decentralized finance!
• Gas-aware integrations: Check out our blockchain integration services and our awesome cross-chain solutions.
• Complete Launches: Check out our web3 development services and blockchain development services. We've got you covered from start to finish!
• Security and Audits: We really prioritize security around here. Get ready for some detailed audits on hooks and pools, along with invariant proofs and a bit of scenario fuzzing thrown in. It’s going to be quite the process! We're all about making sure everything lines up perfectly with v4’s official security framework and takes into account Curve’s failure modes.
• Take a look at what we offer over here: security audit services. We’ve got you covered!
• Capital Formation and Incentives:

When we talk about capital formation, we're really diving into how businesses and economies build up their wealth and resources. It’s all about investing in things that will grow over time. But here’s where it gets interesting--when you throw incentives into the mix, it can really change the game. Companies and individuals are way more likely to put their money into something when there’s a good reason, like tax breaks or grants. So, these incentives can spark innovation and drive growth in ways we might not expect! Hey there! So, if you’re thinking about raising some funds or you want to set up emissions for early liquidity, we’ve got you covered. We can definitely help you figure out how those emissions will work in relation to the LVR. Just let us know what you need! We're here to help you set up a fair launch, whether that's through CCA or some other tailored approach. Want to dive deeper into how we tackle fundraising? Check it out here: fundraising.

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

• Uniswap v4 Launched on January 31, 2025, this platform is already making waves on Ethereum, Polygon, Arbitrum, OP Mainnet, Base, BNB Chain, Blast, World Chain, Avalanche, and Zora! It has undergone nine thorough audits, ensuring it’s pretty reliable. Plus, it's got a sturdy price tag of $15. Exciting stuff! 5M bug bounty program. The costs to create a pool have plummeted by an incredible 99%. You're looking at a solid 99%, and the cool part? UniswapX routing now takes care of the integration for you automatically! Take a look at this: (blog.uniswap.org). It’s pretty cool! We've got some cool features built in, like hooks, a singleton PoolManager, and flash accounting, all thanks to EIP‑1153. Plus, you’ve got some flexible fees, support for native ETH, and even options for custom accounting. If you’re looking for more information, check it out at (docs.uniswap.org). You’ll find lots of details there! Oh, and don’t forget about the CCA liquidity launch protocol! Plus, there's this cool optional feature called the ZK Passport. It pretty much helps kickstart the v4 pool at the clearing price without any hassle. If you're curious to learn more, check out this post: (blog.uniswap.org). You'll find some interesting insights there! So, here’s the scoop on Uniswap's licensing: it’s currently operating under the BUSL until June 15, 2027, which means there are a few commercial limitations. However, if you're looking for a bit of flexibility, they do offer Additional Use Grants that can help out in certain situations. If you're interested in diving deeper into that, check it out here: (support.uniswap.org). It's got all the details you need!
• Curve (Stableswap, v2 “Cryptoswap”, crvUSD/LLAMMA): So, here’s the scoop on Curve! They’ve rolled out some cool features with their Stableswap and the latest version, v2 “Cryptoswap.” Plus, there’s the crvUSD and LLAMMA. It’s definitely something worth checking out! Have you heard about Curve’s stableswap invariant? It’s pretty revolutionary! With their v2 update, they've rolled out some cool features like EMA-centered price scaling. Plus, now we have dynamic fees that adjust (think mid_fee, out_fee, and fee_gamma), along with some neat parameterized options for breadth and depth (those are A and gamma). Definitely a lot of exciting stuff going on! Take a look at all the info over at (docs.curve.finance). You’ll find everything you need there! LLAMMA is a pretty awesome feature that offers banded soft liquidations for crvUSD lending. Just be sure to size the bands properly so you don’t end up with too much turnover! If you’d like to dive deeper into this topic, check out more details over at (docs.curve.finance). It’s packed with useful info! Hey, if you're into interesting incidents, you might want to check out a case study on the crvUSD upward depeg that took place on June 12, 2024. It’s definitely worth a look! The check for deviations on the Pegkeeper regulator got pushed back a bit, which has sparked some ideas for improving our governance and processes. Check out the report here: research.llamarisk.com. You won't want to miss it!
• Ethereum infra context Hey, so on March 13, 2024, the Dencun mainnet went live, and that’s when we saw EIP‑1153 transient storage come into action! This is really crucial for v4’s flash accounting and the latest gas patterns. For all the juicy details, check out the full story over at blog.ethereum.org. You won't want to miss it!

Bottom line

If you're on the hunt for a programmable market structure that comes packed with awesome features like custom fees, oracles, limit orders, and specialized curves, then you should definitely check out Uniswap v4. Just remember to stick to the BUSL guidelines and keep security in mind while you're at it! On the other hand, if you're after something that offers consistent depth and fees--especially with pegged or correlated assets--Curve's v2 along with the Pegkeeper setup is definitely the way to go. Just a heads up, though: when things get a little wild, make sure you put those Pegkeepers and LLAMMA settings through some chaos-testing to ensure everything holds up!

CTA (DeFi): Schedule a DeFi Liquidity Engineering Call

Hey there! Got some questions about DeFi liquidity engineering? Let’s have a conversation! Just book a call with us, and we can dig into what you're looking for and brainstorm some solutions together. Can't wait to chat!

References

Hey, if you're curious about Uniswap v4, definitely head over to the docs! They've got the lowdown on singletons, hooks, flash accounting, and all the essential security info you need. It’s super helpful! Hey, make sure you check out the launch posts and the CCA docs as well! You can find them at docs.uniswap.org. Don't want you to miss out! Check out the EF blog to dive into EIP-1153 and the Dencun activation! If you want to get a bit more background info, EIP-7569 has some great insights too. (eips.ethereum.org). Hey! Check out the Curve docs when you get a chance. You'll find some great info on Stableswap, the v2 parameters, and there's also a report about the LLAMMA and crvUSD incident along with a governance thread. It’s worth a look! (docs.curve.finance).

• Check out the newest research on LVR/MEV and dive into some cool JIT liquidity analyses! You can find it all over at arxiv.org. Happy reading!

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