Interest Protocol

• We are working on upgrading our DEX to support 3 invariants and hooks.

  Hooks as defined on UniswapV4 are lifecycle function calls. For example, a pool with a pre-swap and post-swap hook will call the hook contract before and after every swap.

  This allows developers to extend the functionalities of DEX pools at deployment. Swap hooks can enable KYC/whitelisted pools, dynamic fees, limited orders, lending protocol integrations, and so on.

  Our current approach uses Hot Potatoes and Witnesses:

  A pool with a pre-hook requires a HotPotatoe argument to guarantee that the hook contract was called beforehand.

  A pool with a post-hook creates a Hot potato that can only be destroyed with the hook contract witness.

Questions:

• We need help with the following:

  • Is there a better method to implement hooks?
  • On EVM, the hook functionality is embedded within the contract. For example, a third-party protocol does not need to know what arguments to pass to the hook contract, its address or if the pool has hooks. With our current approach, the front end and other protocols need to know the function signatures of the hook contracts and their arguments.

• Resources:

  https://github.com/Uniswap/v4-core/blob/main/whitepaper-v4-draft.pdf

Discussion

• This is basically the best way to do this pattern in Move at present
  • Kiosk SDK is a good reference source

Noted Areas of Improvement

• Could we have a “Move patterns library” that could make it more clear this is the best way?