WsgemBackstopHook on Ethereum

Uniswap v4 Hook Contract 0xfe36b48c9c0240991e4cef006a2445f2ff524888 on Ethereum · Custom pricing · Verified contract

Volume (24h)
$0
Value locked (TVL)
$0
All-time volume
$0
Pools using this hook
1
Swaps (24h)
0 (0 traders)
Total swaps
98

What it does

This hook replaces the gem/wsgem pool's AMM with direct wsgem minting and redemption at the wrapper's oracle prices, with no hook fee and no LP liquidity, so traders pay the wrapper's spread and should always set slippage limits.

How it works step by step

  • Turns a gem/wsgem pool into a direct gateway to the wsgem wrapper: every swap is filled by minting or redeeming wsgem instead of using pool liquidity.
  • Buying wsgem with gem executes at the wrapper's live mint price; selling wsgem for gem executes at the wrapper's live redeem price.
  • Blocks all liquidity additions, so the pool has no LPs and no AMM curve.
  • Rejects sells when the wrapper has a redemption cooldown, when the redeem price is zero, or when the wrapper lacks enough gem to pay.
  • Has no owner and holds no funds beyond tiny rounding dust left over mid-swap.
Swap behaviour
Each swap bypasses the AMM: the hook takes your input token, mints or redeems wsgem through the wrapper at its oracle-based price, and hands you the output. There is no built-in slippage check, so you must swap through a router that enforces a minimum output.
Liquidity behaviour
Adding liquidity always reverts, so nobody can provide LP liquidity to this pool. Remove-liquidity callbacks are disabled, and since no liquidity can exist there is nothing to withdraw.
Fee behaviour
The hook charges no fee of its own and the pool fee is bypassed; the effective cost is the spread between the wrapper's mint and redeem prices, which wsgem governance controls externally (documented as settable up to 100%).
Owner & admin controls
No admin controls found in the hook; it is ownerless and immutable. However, the external wsgem wrapper's governance can change mint/redeem prices, fees and cooldowns, which directly sets swap prices here.

Enabled Uniswap v4 callbacks

beforeAddLiquidity, beforeSwap, beforeSwapReturnDelta

beforeAddLiquidity: reverts to block all LP deposits; beforeSwap: routes the swap through the wrapper's mint or redeem; beforeSwapReturnDelta: cancels the AMM swap and substitutes the wrapper's fill amounts.

Security & trust assessment

Risk level: medium (verified source, high confidence).

Who controls it: The hook has no admin, but wsgem wrapper governance controls the oracle feeds' mint/redeem pricing and cooldown, effectively deciding swap prices and whether sells work.

Risk to user funds: The hook only handles a trader's input tokens within a single swap and returns wrapper-minted or redeemed output; any price deduction comes from the wrapper's spread, which governance can set high. No LP funds exist to lock or drain.

Security findings

  • [medium] Price set by external wrapper governance: Swaps execute at the wrapper's mint/redeem price, and wsgem governance can change its fees or spread between blocks, reportedly up to 100%. The hook itself has no price floor.
  • [low] No intrinsic slippage protection: The hook accepts whatever the oracle price is; swaps with no minimum-output bound can execute at very unfavorable prices.
  • [info] Ownerless and no LP exposure: The hook has no owner, is not a proxy, and blocks liquidity, so there is no LP principal at risk.

Contract details

Verified source
Yes (WsgemBackstopHook)
Compiler
solc 0.8.28+commit.7893614a
Bytecode size
6,240 bytes
Upgradeable proxy
No
Detected patterns
erc20, moves-currency, return-delta

Pools using WsgemBackstopHook