Arbitrum (@arbitrum) has added another trading venue for USDG, with a new USDG/USDC pool now live on Uniswap (@Uniswap). The pool uses Uniswap's StablePair hook, which applies dynamic fees to
Arbitrum (@arbitrum) has added another trading venue for USDG, with a new USDG/USDC pool now live on Uniswap (@Uniswap). The pool uses Uniswap's StablePair hook, which applies dynamic fees to stablecoin pairs to keep spreads tight and prices close to parity.
USDG's market cap topped $31 million within five days of launch on Arbitrum, according to figures shared by Arbitrum.
StablePair is a Uniswap v4 hook built for stablecoin pairs. Uniswap Labs introduced it on September 10, initially with USDC/USDG and USDC/USDT pools on Ethereum mainnet, according to Blockchain Reporter. It replaces a static liquidity provider fee with a dynamic one.
The logic is straightforward. According to reporting on the launch, the system measures how far a pool's price has moved from its 1:1 reference rate and whether a proposed trade pushes the price closer to or farther from it. Fees are then set for each swap on that basis. Uniswap Labs has argued that static fees hand most of the value from correcting a price drift to arbitrage bots, while a dynamic fee returns more of it to liquidity providers.
The Arbitrum deployment is tracked in Uniswap's public hook registry, which lists a StablePairHook contract as the hook for the USDG/USDC v4 pool on Arbitrum.
The new pool follows USDG's launch on the network earlier this month. CoinDesk reported that Arbitrum joined the Paxos-led Global Dollar Network, with integrations spanning Fluid, Morpho, GMX, Maple, Li.Fi, LayerZero and Kraken, and Uniswap set to follow. USDG is issued by Paxos and backed one-for-one by dollar reserves.
The network's model shares reserve-generated rewards with partners that help drive adoption. CoinDesk noted that the Global Dollar Network has more than 150 partners, including Robinhood, Kraken, Mastercard and OKX, and that Arbitrum holds about $3.8 billion in stablecoins, roughly 60% of it in Circle's USDC, citing DefiLlama data.
Cointelegraph reported that a proposal submitted to ArbitrumDAO would add 100 million ARB to an incentive program to support USDG adoption and liquidity. That proposal is not yet confirmed as approved.
For traders, the Uniswap pool adds another route to swap between USDG and USDC on Arbitrum, and a venue for liquidity providers to earn fees.
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