Spark is building the FX layer for stablecoins, and it's happening on Uniswap. They've migrated $150M of stablecoin liquidity to Uniswap v4, making this one of the largest stablecoin liquidity migrations in DeFi history. Spark will soon move these assets to DualPool, a new v4 hook designed in collaboration with Uniswap Labs.
Between swaps, DualPool keeps idle stablecoin liquidity in Spark's yield‑bearing ERC‑4626 vaults, and moves that capital into a Uniswap v4 pool only when it's needed for execution. For swappers, it still feels like a normal Uniswap swap. For market makers, LPs, and issuers, it creates a way for stablecoin inventory to support trading while staying productive when it would otherwise be idle.
A new model for stablecoin liquidity
Uniswap already makes up nearly 60% of all stable-stable volumes on the major chains we support. With more issuers and pairs coming to market, and stablecoins becoming a larger part of what happens onchain, liquidity needs to become easier to coordinate and more efficient to deploy.
Spark is building an FX Layer for stablecoins to address this problem. As more stablecoins launch, each new issuer creates another market that needs its own liquidity, inventory management, and more. Spark’s model is designed to coordinate capital across approved venues and strategies, helping stablecoin liquidity move through shared infrastructure instead of sitting in isolated markets.
Putting idle capital to work
A major challenge with stablecoin liquidity is that it is usually stuck with a tradeoff. Capital can sit in a pool and be available for swaps (earning fees when trades happen) or it can sit in a vault and earn yield. DualPool makes it possible to do both.
Between swaps, inventory sits in ERC-4626 yield vaults managed by Spark. When a swap comes in, the hook withdraws only the capital needed for that trade, deploys it as concentrated liquidity across Spark’s configured price ranges, executes the swap, then returns the remaining assets to the vault (along with the fee collected by the LP) in the same block.
How it works:
- Between swaps, inventory sits in ERC-4626 yield vaults managed by Spark
- When a swap arrives, the hook withdraws only the capital needed for that trade
- The hook deploys that capital as concentrated liquidity across Spark’s configured price range
- The swap executes through normal Uniswap v4 logic
- After execution, the hook removes the temporary liquidity, settles the trade, and returns the remaining assets to the vault, all in the same block
Deeper liquidity for swappers, more yield for LPs
Spark has migrated $150M of liquidity to Uniswap v4, which will ultimately move to the DualPool hook. USDS will be the initial quoting asset, with support for USDT and PYUSD liquidity under Spark’s coordination framework.
This brings more stablecoin liquidity onto Uniswap v4, giving swappers access to deeper liquidity, lower expected slippage, and more efficient routing. LPs and market makers get a new, more productive way to put stablecoin inventory to work.
The initial deployment of this hook will be owned by Spark. It was designed and built in collaboration with the Uniswap Labs engineering team, and will be open source following audits for anyone to deploy their own version.
Get started
Swappers will be able to access Spark’s migrated liquidity automatically through Uniswap v4 pools on the Uniswap Web App, Wallet, and via the API. Market makers, asset issuers, and LPs who want to explore their own version of the DualPool hook can contact us here.
