V4ULT

DeFi mini-app simplifies the process of liquidity provisioning on Uniswap

V4ULT

Created At

ETHGlobal Buenos Aires

Project Description

🚀 V4ult Dapp: Dynamic Liquidity Management via v4 HooksNudo Dapp leverages the power of Uniswap v4 Hooks to oracle-driven liquidity provisioning to decentralized finance. By integrating a simulated ERC-4626 vault architecture with a base hook contract, we enable dynamic price range adjustments immediately before swaps occur, ensuring capital efficiency and accurate pricing.💡 Core Value PropositionStandard AMMs often suffer from stale liquidity ranges. V4ault Dapp solves this by utilizing a beforeSwap hook to fetch real-time data from Pyth Network. It calculates a precise price band based on market confidence and dynamically adjusts liquidity parameters (ticks) for the incoming swap, optimizing execution and mitigating impermanent loss.⚙️ Technical Architecture & Features1. Intelligent Oracle Integration (Pyth)Instead of relying solely on on-chain TWAP, our hook connects directly to the Pyth Network in the beforeSwap lifecycle.Live Data Validation: We read the on-chain price using pyth.getPriceNoOlderThan, strictly enforcing data freshness.Confidence Intervals: We calculate a safe price range using Pyth's confidence : The swap is only allowed if the relative confidence is within safe bounds. Dynamic Tick MappingOnce the safe price range is calculated, the contract executes priceBandToTicks. This maps the oracle price band to specific Uniswap ticks (bandTickLower and bandTickUpper), storing them in the hook's state to be used immediately in liquidity modification logic.3. Scalable Multi-Pool DesignWhy not direct protocol usage? To support scalability across multiple assets, we avoided hardcoding a single pool. The architecture requires a unique identifier, allowing V4ult Dapp to manage strategies.Constructor Logic: Links the PoolKey, the V4ultProject interface (INudoMultiProject), and the Pyth Oracle (IPyth) upon deployment.4. Robust Security & Access ControlStrict Modifiers: Functions are protected by onlyPoolManager, onlyAdmin, and onlyStrategy.Fund Validation: In beforeSwap, we verify that the project is active, the recipientFunds pointer is correct, and the hook is being invoked by the correct pool.Overflow Protection: Comprehensive checks on price calculations and tick conversions.

How it's Made

Solidity smart contracts, Pyth Hereda. Growth Plan: Accelerating Global Blockchain AdoptionOur mission extends beyond code; we aim to democratize access to sophisticated market-making strategies. By abstracting complex liquidity management into an automated v4 Hook, Nudo Dapp empowers users to participate in DeFi with institutional-grade tools.Here is how we plan to drive adoption and scale the protocol:1. Maximizing Yields via Dynamic RangesTo attract the next wave of liquidity providers, we must offer superior returns.Higher APR through Concentration: unlike static pools, our hook dynamically concentrates liquidity around the Pyth oracle price. This ensures capital is always utilized, leading to significantly higher APR for LPs.No Missed Yield: Our "always-active" strategy ensures that even during quiet market hours, your liquidity is positioned to capture fees from every single trade.2. Taming Volatility & Impermanent LossNew users are often scared away by "Impermanent Loss" (IL). We turn volatility into an opportunity.Adaptive IL Strategy: Our hook doesn't just react; it anticipates. By utilizing volatility data from Pyth, we adjust the width of our tick ranges ($$k \cdot \text{conf}$$) to mitigate IL exposure during turbulent market conditions.Volatile Asset Support: While others stick to stablecoins, our dynamic confidence intervals allow us to safely support highly volatile assets without exposing LPs to catastrophic loss.3. The "Anti-Bot" Defense: Cross-Pair ValidationA major barrier to adoption is the fear of predatory MEV bots and liquidation cascades. We are implementing a novel Cross-Pair Price Reference (PR) Update:The Logic: We prevent price manipulation by validating prices across correlated pairs before allowing a swap.Example (CELO Ecosystem): The hook compares the implied price of CELO/USDT against CELO/USDC.The Benefit: If these pairs are "crossed" (showing inconsistent prices due to manipulation), the hook detects the anomaly and prevents the liquidity range from being exploited. This effectively blocks arbitrage bots from draining LP value during momentary market dislocations.4. Future Scale: Off-Chain ConsensusTo support global adoption, we must scale beyond mainnet limitations.Hybrid Architecture: We are developing an off-chain consensus mechanism. Heavy computation regarding market trends and strategy adjustments will be calculated off-chain and verified on-chain.

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V4ULT | ETHGlobal