YieldOptimizer Hook for Uniswap v4

Overview

A Uniswap v4 hook implementation that optimizes yield across liquidity pools by tracking deposits, calculating yields, and automatically rebalancing positions based off performance metrics.

Architecture

Core Components

1. YieldOptimizerHook Contract

   • Extends BaseHook from v4-periphery
   • Implements beforeSwap and afterSwap hooks
   • Tracks user deposits and yields
   • Manages rebalancing logic

2. Test Infrastructure

   • Uses Hardhat for testing
   • Connects to Unichain Sepolia PoolManager
   • Implements CREATE2 deployment for deterministic hook addresses

Key Features

• Deposit tracking
• Yield calculation
• Automated rebalancing
• Gas-optimized swaps

Current Status

Completed

1. Basic contract structure
2. Hook interface implementation
3. State variable setup
4. Basic deposit tracking
5. Initial test setup with Sepolia integration

In Progress

1. Hook deployment validation
2. Pool initialization testing
3. Swap functionality implementation
4. Yield calculation logic

Blockers

1. CREATE2 factory deployment issues
2. Hook validation against v4-core requirements
3. Hardhat vs Foundry testing patterns

Development

Setup

npm install
npx hardhat compile

Running Tests

npx hardhat test

Test Structure

describe("YieldOptimizerHook", function () {
  // Core functionality
  it("Should initialize with correct pool manager");
  it("Should track deposits correctly");
  it("Should calculate yields accurately");
  it("Should rebalance when conditions are met");
  it("Should optimize gas usage in swaps");
});

Integration Details

Unichain Sepolia

• PoolManager Address: 0xC81462Fec8B23319F288047f8A03A57682a35C1A
• Network: Sepolia testnet

Hook Deployment

• Uses CREATE2 for deterministic addresses
• Requires proper hook validation bitmap
• Must implement v4-core hook interfaces

Development Roadmap

Immediate Tasks

1. Fix CREATE2 factory deployment
2. Implement proper hook validation
3. Complete swap functionality tests
4. Add yield calculation tests

Future Enhancements

1. Gas optimization
2. Advanced rebalancing strategies
3. Frontend integration
4. Additional pool types support

Technical Notes

Hook Implementation

contract YieldOptimizerHook is BaseHook {
    // Core state variables
    mapping(address => mapping(address => uint256)) public userDeposits;
    mapping(address => uint256) public totalDeposits;
    mapping(address => uint256) public lastYieldUpdate;
    mapping(address => uint256) public poolYields;

    uint256 public constant REBALANCE_THRESHOLD = 500; // 5% in bps
}

Architecture Notes

• Follows v4-core singleton architecture
• Uses hook callbacks for custom logic
• Implements proper pool initialization
• Handles token approvals and transfers

References

1. Uniswap v4 Documentation
2. v4-core Repository
3. v4-periphery

License

MIT