Dynamic Fees

HOOKED introduces an oracle-driven fee system that adjusts dynamically to market conditions. Instead of relying on static fee tiers, each pool’s fee is optimized using real-time data on volume, volatility, and liquidity depth. This ensures traders always receive competitive pricing while liquidity providers capture fair compensation for risk.

Unlike traditional fixed-fee models, HOOKED’s approach is designed to protect traders and strengthen liquidity across all market conditions. A cap is applied to stable, low-volatility pairs, guaranteeing cost efficiency for the most common trades. As conditions change, fees adjust upward in a controlled manner, preserving protocol integrity and protecting against MEV extraction during volatility spikes or flash crash scenarios.