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FlowVVM Protocol

Turn MEV into LP Yield with Uniswap V4 Hooks + EVVM

A permissionless arbitrage execution layer that internalizes MEV for liquidity providers. Arbitragers attach EVVM-signed transactions to swap flows, capturing value that flows directly to LPs.

How EVVM + Uniswap V4 Hooks Work

Execution Flow

1

Arbitrager fishes EVVM-Signed Transaction

The arbitrager includes an EVVM transaction payload (EIP-191 signed) inside HookData.

2

Hook Verifies EVVM Payload

The Hook decodes HookData, validates the EVVM signature, checks nonce and priority, and confirms that the message is authorized for execution.

3

Permissioned Liquidity Access

Upon successful validation, the Hook authorizes access to the pool’s liquidity specifically for executing the EVVM-defined action.

4

Atomic Arbitrage Execution

The swap executes atomically using pool liquidity, allowing arbitragers to capture AMM price deltas without exposing the pool to external MEV extraction.

5

Incentive & Value Distribution

The Hook routes EVVM incentives back to the liquidity providers according to the pool’s reward policy.

Technical Foundation

Uniswap V4 Hooks

  • Whitepaper states Hooks enable "internalizing MEV for LPs"
  • Custom logic embedded during swaps
  • Precedents: Detox-Hook (arb profits), Aegis (dynamic fees)
  • OpenZeppelin audited security model

EVVM Execution

  • EIP-191 signed messages for intent verification
  • Hook acts as executor/staker
  • Permissionless participation model
  • 20-35% gas cost reduction via batching

Benefits for All Participants

Liquidity Providers
  • Optimized Yield: LPs capture both swap fees and the economic value of arbitrage, without being displaced by external MEV.
  • Reduced LVR: The EVVM keeps the pool balanced, significantly decreasing Loss-versus-Rebalancing.
  • Internalized MEV: Arbitrage value is returned to LPs instead of being extracted by external actors.
  • Stable Liquidity Flow: The EVVM can operate with zero execution cost, ensuring long-term sustainability for LP returns.
EVVM Execution Layer
  • Cost-Free Execution: The model enables the EVVM to perform rebalances and arbitrage without incurring execution costs by delegating actions through EIP-191 signatures.
  • Optional Private Liquidity: The EVVM may maintain a private liquidity source for controlled, autonomous arbitrage.
  • Secure Access Control: Every action is cryptographically authorized, ensuring safe and permissioned execution.
  • Predictable Market Impact: Coordinated execution reduces unnecessary slippage and avoids competition with external searchers.
Protocol Integrators
  • High-Security Architecture: Hook implementation follows OpenZeppelin security standards to minimize attack surface.
  • Uniswap V4 Native: Fully composable with the existing architecture and slot-based design.
  • Programmable EVVM Logic: EVVM signatures enable custom execution flows without compromising security.
  • Decentralized Infrastructure: No central operators or failure points; all components run autonomously.
System Architecture
┌─────────────────────────────────────────────────────────────┐
│                      Arbitrager                             │
│                                                            │
│  • Attaches EVVM signature to HookData                     │
└──────────────────────┬──────────────────────────────────────┘
                       │
                       ▼
┌─────────────────────────────────────────────────────────────┐
│                  Uniswap V4 Pool                            │
│  • Receives swap with HookData                              │
│  • Triggers beforeSwap() hook                               │
└──────────────────────┬──────────────────────────────────────┘
                       │
                       ▼
┌─────────────────────────────────────────────────────────────┐
│                   FlowVVM Hook                              │
│  • Validates EVVM signature                                 │
│  • Verifies arbitrager stake                                │
│  • Grants controlled liquidity access                       │
│  • Executes arbitrage atomically                            │
│  • Collects EVVM incentives                                 │
└──────────────────────┬──────────────────────────────────────┘
                       │
                       ▼
┌─────────────────────────────────────────────────────────────┐
│                Value Redistribution                         │
│  • Arbitrage profits → LPs                                  │
│  • EVVM incentives → LPs                                    │
│  • Swap fees → LPs                                          │
└─────────────────────────────────────────────────────────────┘

Key Components

  • EVVM Staking System: Incentivizes liquidity providers to stake their LP tokens
  • Uniswap V4 Hook: Custom logic embedded in swap flow for MEV capture

Start Building with FlowVVM

Join the next generation of MEV-aware DeFi protocols. Build on audited, battle-tested infrastructure.

For LPs

Maximize your yield

For Arbitragers

Execute permissionlessly

For Developers

Build on FlowVVM