RepLen

Liquidity Provider Privacy Shield (Uniswap v4)

Overview

Liquidity Providers (LPs) on automated market makers unintentionally leak valuable information through their on-chain actions. Adding, removing, or rebalancing liquidity immediately exposes strategy, timing, and intent, which can be exploited by MEV bots and informed traders.

This project introduces a "Liquidity Provider Privacy Shield" built on Uniswap v4 Hooks, designed to reduce unnecessary information exposure from LP actions while preserving full on-chain verifiability and protocol integrity.

Rather than hiding liquidity or obscuring pool state, the system minimizes 'when' and 'how' LP actions affect the pool, making liquidity provision more resilient to adverse selection and extractive dynamics.

Problem Statement

In Uniswap v3 and earlier designs:

• LP actions are applied instantly and publicly
• Timing and granularity of liquidity changes leak strategy
• MEV bots exploit this information to extract value
• Passive and retail LPs suffer from toxic flow

This is not a UI or tooling issue, but a market-structure information leakage problem.

Proposed Solution

Using Uniswap v4 Hooks, this project introduces a privacy-aware liquidity management layer that:

• Intercepts LP actions before they affect pool state
• Applies controlled delays, batching, or smoothing
• Reduces immediate strategy signaling
• Maintains full on-chain transparency and correctness

The result is improved execution fairness and healthier liquidity dynamics without introducing hidden state or off-chain trust.