allowlist: add Dory Burn and Mint Power Hook on Arbitrum #1306
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This hook is designed to support a deflationary governance token model by invoking a controlled burn mechanism during liquidity-related actions.
The hook does not introduce custom fee logic, privileged state changes, or external value extraction. Its behavior is deterministic and limited in scope.
Hooked Pool
Uniswap App link:
https://app.uniswap.org/explore/pools/arbitrum/0xec6e37b2d66aa5ef5a9fc296b4da3474b121f512428dd425a51c6424955fc5eb
⸻
Hook Purpose
• Support a deflationary token economy for the protocol’s governance token
• Ensure predictable supply reduction through on-chain, rule-based burn logic
• Maintain transparency and simplicity in liquidity interactions
⸻
Technical Behavior
• The hook is triggered only during predefined pool lifecycle events
• Executes a burn function on the governance token contract
• No external calls beyond the token burn invocation
• No owner-only or upgradeable logic
• No dynamic parameter mutation after deployment
⸻
Security Considerations
• No reentrancy risk introduced by the hook
• No custody of user funds
• No fee skimming, MEV extraction, or hidden value transfer
• Token contract and hook contract are immutable
⸻
Permissions & Trust Model
• Hook contract has no admin privileges
• Pool permissions are permanently renounced
• Token minting and privileged controls are disabled
• Burn logic is fully on-chain and verifiable
⸻
Impact on Users & Liquidity
• Does not alter swap pricing logic
• Does not affect LP positions beyond the intended burn mechanism
• No adverse impact on pool solvency or price discovery
⸻
Motivation for Allowlisting
The hook enables a standard deflationary mechanism without introducing additional risk to LPs or traders.
Allowlisting this hook would restore normal trading activity for the community while maintaining Uniswap v4’s security and design principles.
⸻
Additional Notes
• The hook has been tested on testnet and behaves as expected
• We are happy to provide audits, test cases, or further technical details if required