Original | Odaily Planet Daily (@OdailyChina)
Author | Wenser (@wenser 2010 )
After a slight market recovery, Meme tokens within the Ethereum ecosystem have regained momentum. Following ASTEROID, ecosystem tokens such as sato, sat1, Lo0p, and FLOOD—backed by the Uniswap v4 Hook protocol—have gradually become focal points of market attention, with market caps ranging from millions to tens of millions of dollars, bringing much-needed concentrated liquidity to a narrative-depleted crypto market. Odaily Planet Daily will briefly review these tokens and explore whether this surge can help revive UNI’s price.
Is Hook Summer here? 4 major ecosystem tokens with intelligent liquidity management
According to the Uniswap official documentation, Hooks are "plug-in smart contracts" custom-built for Uniswap v4 pools. Unlike traditional Uniswap V2/V3, which rely solely on fixed constant product curves (xy=k), Hooks allow developers to automatically inject custom logic at key lifecycle events of the pool—such as initialization, adding/removing liquidity, swaps, and donations—transforming the entire AMM (Automated Market Maker) into a programmable "Lego block." In addition to the previously mentioned uPEG, recent representative projects include:
sato: Market cap peaked above $38 million
CA: 0x829f4b62eebe12af653b4dd4ffc480966f7d7f09
Market cap currently reported: $28 million
On May 4, the moment sato emerged, Odaily Planet Daily provided a brief introduction, at which time its market cap was only $9 million. The token is minted and burned via the Uniswap v4 curve mechanism: purchases generate new tokens while locking ETH as reserves, and sales exchange ETH from the reserves while burning tokens; at that time, cumulative purchases had approached 1,000 ETH. Subsequently, sato’s market cap once surpassed $30 million.
Although community users later discovered that its curve mechanism had a bid-ask spread, causing its market cap to briefly drop below $13 million, its innovative mechanism and first-mover advantage have kept its market cap around $28 million, with a 24-hour trading volume nearing $6 million.
sat1: All-time market cap exceeded $10 million
CA: 0x8f66337a0c2a02202fd91dd596c411cf977c6060
Market cap currently reported at approximately $800,000
On May 8, SAT1 reached its peak hype under the concept of "optimized sato." Thanks to strong promotion by crypto KOL Hanba Longwang in WeChat groups, the token's market cap briefly surpassed $10 million. However, following a backlash in public sentiment, the project eventually descended into a death spiral, with its market cap now less than one-tenth of its peak.
Loop: Market cap peaked near $6.6 million
CA: 0x20ea861b3acec90d3a15b4755d9a1cf1f161496e
Market cap currently reported: approximately $960,000
Official account: https://x.com/lo0pio
On May 10, Lo0p’s market cap briefly surpassed $6 million, surging over 110x in daily gains. Lo0p’s core concept is a lending AMM protocol built on Uniswap v4 Hooks, designed to address the issue of idle ETH capital efficiency in LP pools. Users can purchase LO0P tokens via a bonding curve and lock them as collateral (without selling) to directly borrow ETH from the pool’s reserves at a 40% LTV. Borrowing does not directly impact spot prices, and after liquidation, the mechanism attempts to refill the LP band. Hooks inject custom logic into the swap and liquidity lifecycle, enabling composite returns from “collateralized lending + LP yield + borrowing interest” while maintaining pool price stability. Its core innovation lies in “built-in lending.”
FLOOD: Market cap peak near $6 million
CA: 0xff003fbe8b8d5e7f271a9cb9f2780003daed2aa8
Market cap currently reported: $1.4 million
Official account: https://x.com/flood_markets
On May 10, FLOOD’s market cap briefly surpassed $5 million, but as the hype subsided, it currently stands at around $1.4 million. According to reports, FLOOD has a total supply of 50 million tokens, with a unique mechanism: assets generated from user purchases are deposited into the corresponding Aave v3 market to earn yield, and transaction fees are retained within the pool to increase reserves and influence token price. The core lies in Aave’s integrated automatic yield generation, with the Hook mechanism serving as an “automatic rebalancing and yield recycling” system. No wonder a community user remarked: “Buy-side funds enter the pool → pool assets earn interest on Aave → interest stays in the pool → long-term price appreciation—so I’m basically depositing my own money to earn interest?”
The Hook mechanism token is driving the growth of the Uniswap ecosystem: UNI is bullish in the long term, but short-term gains are limited.
Thanks to the rapid development of Uniswap v4's Hook mechanism, ecosystem tokens in this sector have become a type of meme coin and project ecosystem token, and over the long term, they are expected to further attract users and liquidity participation in Uniswap v4 liquidity pools and ecosystem development.
Considering the previous news that "Uniswap has enabled the fee switch, with a portion of protocol fees used to burn UNI tokens," the long-term fundamentals of UNI appear steadily positive.
However, in the short term, the emergence of Hook mechanism tokens cannot directly drive an increase in the UNI token, as other factors such as token lifecycle and sustainability, token price volatility and transaction fee ratios, and the impact of cryptocurrency regulatory policies and overall market trends on the UNI token also come into play.
Therefore, in one sentence, the Hook ecosystem is "long-term nourishment" for UNI, but in the short term, it acts more like a "catalyst" than a "booster."
Additionally, according to the Uniswap official website, the current TVL for v4 stands at $595 million, slightly lower than that of v3 ($792 million) and v2 ($966 million), indicating that adoption of v4 and the Hook ecosystem still requires time to build momentum and gradually emerge as a mainstream liquidity management protocol.
Finally, Odaily Planet Daily reminds readers that the tokens mentioned above are products of early-stage technological innovation experiments and may contain unknown bugs or other risks; please be aware of these risks when trading. The information above does not constitute investment advice.