Uniswap Labs is building a Uniswap v4 hook to automatically distribute OUSD rewards to liquidity providers. The stablecoin, issued by Bridge, a Stripe company, is already live across Uniswap's protocol, apps and API, but Uniswap has not disclosed reward rates, eligible pools, or a rollout date.
Uniswap Labs is developing a Uniswap v4 hook with Open Standard to pay Open USD (OUSD) rewards directly to liquidity providers. The token already trades across Uniswap's protocol, apps and API, while the rewards mechanism itself remains in development.
Uniswap described OUSD's debut as carrying millions in liquidity from day one, according to the company's Sept. 30 announcement. The rewards hook, however, still needs a full design before it can go live.
How the rewards hook would work
A hook is an external smart contract that customizes how a Uniswap v4 pool behaves, running code before or after swaps or changes to liquidity. Uniswap's developer documentation lists liquidity incentives as one potential use case. Hooks are set when a pool is created and cannot be added, removed, or swapped afterward.
The planned hook would route OUSD rewards through the protocol to liquidity providers supplying Uniswap's trading pools. Crypto Briefing reports the initiative targets mainly trading pairs involving stablecoins, giving providers a way to earn beyond the trading fees that have traditionally been their main income source on the exchange.
OUSD's launch and revenue model
The collaboration follows OUSD's broader launch earlier on 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, with partners earning rewards proportional to the supply and activity they generate on their platforms.
The OUSD hook also follows the September 2026 launch of the StablePair Hook, which brought dynamic fees to stablecoin transactions on Uniswap v4, according to Crypto Briefing. Uniswap's web application separately added tools in 2025 giving liquidity providers better visibility into their rewards.
What is still unknown
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."
Sources: The Defiant, Crypto Briefing
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