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https://github.com/atj3097/buyback-hook
https://github.com/atj3097/buyback-hook
Last synced: about 1 month ago
JSON representation
- Host: GitHub
- URL: https://github.com/atj3097/buyback-hook
- Owner: adam0x7
- License: mit
- Created: 2023-10-04T06:10:25.000Z (about 1 year ago)
- Default Branch: main
- Last Pushed: 2023-11-17T17:41:01.000Z (about 1 year ago)
- Last Synced: 2024-10-14T22:03:10.628Z (about 2 months ago)
- Language: Solidity
- Size: 45.9 KB
- Stars: 1
- Watchers: 1
- Forks: 0
- Open Issues: 0
-
Metadata Files:
- Readme: README.md
- License: LICENSE
Awesome Lists containing this project
- awesome-uniswap-hooks - Automated Buyback
- awesome-uniswap-v4-resources - Automated Buyback
- awesome-uniswap-v4-resources - Automated Buyback
README
# Uniswap v4 Token Buyback Hook
(Notes from Tyllen, swap assets across different L2s/chains)
## Description
This project introduces a token buyback mechanism for Uniswap v4 using a specialized hook. The hook is designed to allocate a portion of the fees collected from token swaps and liquidity withdrawals for the purpose of automatically buying back a specific token. This innovative approach aims to enhance liquidity and contribute to the stabilization of the token's value.
## How It Works
### Hook Functionality
- **Fee Allocation**: A predefined percentage of the fees from swaps and withdrawals is earmarked for the buyback.
- **Automated Buyback Process**: The accumulated fees are used to automatically purchase the specified token at regular intervals or under certain market conditions.
- **Market Sensitivity**: The mechanism is designed to respond dynamically to market fluctuations, optimizing buyback timing and volumes.
### Integration with Uniswap v4
- The hook integrates seamlessly with the existing Uniswap v4 framework, complying with its operational and security standards.
- It enhances the Uniswap v4 ecosystem by adding a new layer of functionality beneficial to token stability.
## Economics
- **Liquidity Enhancement**: By reinjecting capital into the token market, the mechanism bolsters liquidity.
- **Price Stabilization**: Regular buybacks can mitigate volatility, contributing to a more stable token valuation.
## Benefits
- **Token Value Support**: Supports the market value of the token by reducing supply and potentially increasing demand.
- **Confidence in Liquidity**: Increases confidence among liquidity providers and traders in the token's market.
- **Enhanced LP Rewards**: Potentially increases the value of liquidity provider rewards.
## Deployment Scripts
Scripts for deploying the token buyback hook on the following testnets will be provided:
- Polygon zkEVM
- Optimism Testnet
- Arbitrum Testnet
---
```
+-----------------+ +------------------+ +-------------------+
| | | | | |
| Token Swaps +-----> Fee Collection +-----> Hook Allocation |
| & Withdrawals | | (Swap/Withdraw) | | (Set % for Buy) |
| | | | | |
+-----------------+ +------------------+ +-------------------+
|
|
v
+----------------------+
| |
| Automated Buyback |
| (Purchase Tokens) |
| |
+----------------------+
|
|
v
+----------------------+
| |
| Token Market Impact |
| (Liquidity & Value) |
| |
+----------------------+
```