Uniswap Labs Plans OUSD Rewards Hook for Liquidity Providers

Uniswap Labs is developing a Uniswap v4 hook with Open Standard to distribute Open USD ($OUSD) rewards automatically to liquidity providers, the company said Sept. 30.

The token is already live across Uniswap's protocol, apps and API. Uniswap described its debut as having “millions in liquidity from day one,” while the rewards hook remains in development.

The collaboration follows $OUSD's broader launch earlier Sept. 30. The stablecoin is issued by Bridge, a Stripe company, according to Open Standard's launch announcement.

Open Standard says its model shares nearly all reserve revenue with companies that grow adoption. Its launch notice says partners earn rewards proportional to the supply and activity they generate on their platforms. Uniswap's planned hook would distribute $OUSD rewards through the protocol to the liquidity providers supplying its trading pools.

A hook is an external smart contract that customizes a Uniswap v4 pool's behavior, such as by running code before or after swaps or changes to liquidity. Uniswap's developer documentation identifies liquidity incentives as one potential use. Hooks are specific to pools and optional; they are set when a pool is created and cannot be added, removed or swapped afterward.

For liquidity providers, the reward terms are still to come. Uniswap's announcement did not specify reward rates, eligible pools or a deployment date, saying only: “Full design coming soon.”