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$1.5 BILLION

LP losses during the USDC depeg — March 2023

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DURING THE DEPEG

USDC trading at $0.87

Arbitrageurs draining LP value on every swap

LPs unable to exit fast enough

WHAT THE POOLS DID

Nothing.

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HOW STABLECOIN POOLS HANDLE DEPEG RISK TODAY

Uniswap v3/v4 pools

No built-in depeg response

Curve StableSwap

Amplification parameter, but no cross-chain awareness, no automatic fee escalation

Balancer

Rate providers for yield-bearing tokens, but no real-time depeg detection from external chains

$2B+ TVL in stablecoin pools. Zero autonomous cross-chain protection.

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SentinelPeg

A Uniswap v4 hook that dynamically adjusts swap fees

based on real-time cross-chain depeg severity

Powered by Reactive Network · Deployed on Unichain

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ETHEREUM SEPOLIA

Origin Chain

Uniswap V2 Pool

Emits Sync(reserve0, reserve1)

on every trade

REACTIVE NETWORK

Lasna Testnet

SentinelPegReactive

react(): decode → drift

→ classify → Callback

UNICHAIN SEPOLIA

Destination Chain

SentinelPegHook.sol (v4)

4 hook points:

fees · volume · LP guard

→

subscribed events

→

cross-chain callback

V2 reserves on Ethereum → Reactive Network processing → V4 fee enforcement on Unichain

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FOUR UNISWAP V4 HOOK POINTS

beforeInitialize

Validates pool uses dynamic fee flag — rejects pools that can't support fee overrides

beforeSwap

Reads current severity, checks staleness, returns graduated fee via OVERRIDE_FEE_FLAG

afterSwap

Tracks cumulative swap volume during active depeg — the 'protected volume' metric

beforeRemoveLiquidity

Blocks LP withdrawals at CRITICAL severity to prevent bank-run dynamics

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NONE

0.05%

1×

< 0.5%

Open

MILD

0.30%

6×

0.5% – 2%

Open

SEVERE

1.00%

20×

2% – 5%

Open

CRITICAL

5.00%

100×

> 5%

BLOCKED

STALE

0.30%

—

data > 1hr

Open

"We don't halt the pool. We make extraction progressively more expensive."

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Live Demo

Code

Tests

Frontend

·

·

All interactions are real on-chain transactions on Unichain Sepolia + Reactive Lasna

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SentinelPeg

The first cross-chain depeg defense system for Uniswap v4

3

Chains

4

Hook Points

76

Tests

LIVE

Testnet

Hook: 0x8051EE84c86dBa66e72Bf51336e6059D41aa6080 — Unichain Sepolia

Reactive: 0x330eFe22a73AAD374b887d6F77cd90fa16b6cC60 — Reactive Lasna

Partners: Reactive Network · Unichain

UHI8 — Asset-Class Specific Liquidity

github.com/Sandijigs/SenitelPeg

SentinelPeg makes sure the next depeg never goes unanswered.