v4-security-foundations

v4 Hook Security Foundations

Security-first guide for building Uniswap v4 hooks. Hook vulnerabilities can drain user funds—understand these concepts before writing any hook code.

Threat Model

Before writing code, understand the v4 security context:

Threat Area	Description	Mitigation
Caller Verification	Only PoolManager should invoke hook functions	Verify msg.sender == address(poolManager)
Sender Identity	msg.sender always equals PoolManager, never the end user	Use sender parameter for user identity
Router Context	The sender parameter identifies the router, not the user	Implement router allowlisting
State Exposure	Hook state is readable during mid-transaction execution	Avoid storing sensitive data on-chain
Reentrancy Surface	External calls from hooks can enable reentrancy	Use reentrancy guards; minimize external calls

Permission Flags Risk Matrix

All 14 hook permissions with associated risk levels:

Permission Flag	Risk Level	Description	Security Notes
beforeInitialize	LOW	Called before pool creation	Validate pool parameters
afterInitialize	LOW	Called after pool creation	Safe for state initialization
beforeAddLiquidity	MEDIUM	Before LP deposits	Can block legitimate LPs
afterAddLiquidity	LOW	After LP deposits	Safe for tracking/rewards
beforeRemoveLiquidity	HIGH	Before LP withdrawals	Can trap user funds
afterRemoveLiquidity	LOW	After LP withdrawals	Safe for tracking
beforeSwap	HIGH	Before swap execution	Can manipulate prices
afterSwap	MEDIUM	After swap execution	Can observe final state
beforeDonate	LOW	Before donations	Access control only
afterDonate	LOW	After donations	Safe for tracking
beforeSwapReturnDelta	CRITICAL	Returns custom swap amounts	NoOp attack vector
afterSwapReturnDelta	HIGH	Modifies post-swap amounts	Can extract value
afterAddLiquidityReturnDelta	HIGH	Modifies LP token amounts	Can shortchange LPs
afterRemoveLiquidityReturnDelta	HIGH	Modifies withdrawal amounts	Can steal funds

Risk Thresholds

• LOW: Unlikely to cause fund loss
• MEDIUM: Requires careful implementation
• HIGH: Can cause fund loss if misimplemented
• CRITICAL: Can enable complete fund theft

CRITICAL: NoOp Rug Pull Attack

The BEFORE_SWAP_RETURNS_DELTA permission (bit 10) is the most dangerous hook permission. A malicious hook can:

1. Return a delta claiming it handled the entire swap
2. PoolManager accepts this and settles the trade
3. Hook keeps all input tokens without providing output
4. User loses entire swap amount

Attack Pattern

// MALICIOUS - DO NOT USE
function beforeSwap(
    address,
    PoolKey calldata,
    IPoolManager.SwapParams calldata params,
    bytes calldata
) external override returns (bytes4, BeforeSwapDelta, uint24) {
    // Claim to handle the swap but steal tokens
    int128 amountSpecified = int128(params.amountSpecified);
    BeforeSwapDelta delta = toBeforeSwapDelta(amountSpecified, 0);
    return (BaseHook.beforeSwap.selector, delta, 0);
}

Detection

Before interacting with ANY hook that has beforeSwapReturnDelta: true:

1. Audit the hook code - Verify legitimate use case
2. Check ownership - Is it upgradeable? By whom?
3. Verify track record - Has it been audited by reputable firms?
4. Start small - Test with minimal amounts first

Legitimate Uses

NoOp patterns are valid for:

• Just-in-time liquidity (JIT)
• Custom AMM curves
• Intent-based trading systems
• RFQ/PMM integrations

But each requires careful implementation and audit.

Delta Accounting Fundamentals

v4 uses a credit/debit system through the PoolManager:

Core Invariant

For every transaction: sum(deltas) == 0

The PoolManager tracks what each address owes or is owed. At transaction end, all debts must be settled.

Key Functions

Function	Purpose	Direction
take(currency, to, amount)	Withdraw tokens from PoolManager	You receive tokens
settle(currency)	Pay tokens to PoolManager	You send tokens
sync(currency)	Update PoolManager balance tracking	Preparation for settle

Settlement Pattern

// Correct pattern: sync before settle
poolManager.sync(currency);
currency.transfer(address(poolManager), amount);
poolManager.settle(currency);

Common Mistakes

1. Forgetting sync: Settlement fails without sync
2. Wrong order: Must sync → transfer → settle
3. Partial settlement: Leaves transaction in invalid state
4. Double settlement: Causes accounting errors

Access Control Patterns

PoolManager Verification

Every hook callback MUST verify the caller:

modifier onlyPoolManager() {
    require(msg.sender == address(poolManager), "Not PoolManager");
    _;
}

function beforeSwap(
    address sender,
    PoolKey calldata key,
    IPoolManager.SwapParams calldata params,
    bytes calldata hookData
) external override onlyPoolManager returns (bytes4, BeforeSwapDelta, uint24) {
    // Safe to proceed
}

Why This Matters

Without this check:

• Anyone can call hook functions directly
• Attackers can manipulate hook state
• Funds can be drained through fake callbacks

Router Verification Patterns

The sender parameter is the router, not the end user. For hooks that need user identity:

Allowlisting Pattern

mapping(address => bool) public allowedRouters;

function beforeSwap(
    address sender,  // This is the router
    PoolKey calldata key,
    IPoolManager.SwapParams calldata params,
    bytes calldata hookData
) external override onlyPoolManager returns (bytes4, BeforeSwapDelta, uint24) {
    require(allowedRouters[sender], "Router not allowed");
    // Proceed with swap
}

User Identity via hookData

function beforeSwap(
    address sender,
    PoolKey calldata key,
    IPoolManager.SwapParams calldata params,
    bytes calldata hookData
) external override onlyPoolManager returns (bytes4, BeforeSwapDelta, uint24) {
    // Decode user address from hookData (router must include it)
    address user = abi.decode(hookData, (address));
    // CAUTION: Router must be trusted to provide accurate user
}

msg.sender Trap

// WRONG - msg.sender is always PoolManager in hooks
function beforeSwap(...) external {
    require(msg.sender == someUser); // Always fails or wrong
}

// CORRECT - Use sender parameter
function beforeSwap(address sender, ...) external {
    require(allowedRouters[sender], "Invalid router");
}

Token Handling Hazards

Not all tokens behave like standard ERC-20s:

Token Type	Hazard	Mitigation
Fee-on-transfer	Received amount < sent amount	Measure actual balance changes
Rebasing	Balance changes without transfers	Avoid storing raw balances
ERC-777	Transfer callbacks enable reentrancy	Use reentrancy guards
Pausable	Transfers can be blocked	Handle transfer failures gracefully
Blocklist	Specific addresses blocked	Test with production addresses
Low decimals	Precision loss in calculations	Use appropriate scaling

Safe Balance Check Pattern

function safeTransferIn(
    IERC20 token,
    address from,
    uint256 amount
) internal returns (uint256 received) {
    uint256 balanceBefore = token.balanceOf(address(this));
    token.safeTransferFrom(from, address(this), amount);
    received = token.balanceOf(address(this)) - balanceBefore;
}

Base Hook Template

Start with all permissions disabled. Enable only what you need:

// SPDX-License-Identifier: MIT
pragma solidity ^0.8.24;

import {BaseHook} from "v4-periphery/src/base/hooks/BaseHook.sol";
import {Hooks} from "v4-core/src/libraries/Hooks.sol";
import {IPoolManager} from "v4-core/src/interfaces/IPoolManager.sol";
import {PoolKey} from "v4-core/src/types/PoolKey.sol";
import {BeforeSwapDelta, BeforeSwapDeltaLibrary} from "v4-core/src/types/BeforeSwapDelta.sol";

contract SecureHook is BaseHook {
    constructor(IPoolManager _poolManager) BaseHook(_poolManager) {}

    function getHookPermissions() public pure override returns (Hooks.Permissions memory) {
        return Hooks.Permissions({
            beforeInitialize: false,
            afterInitialize: false,
            beforeAddLiquidity: false,
            afterAddLiquidity: false,
            beforeRemoveLiquidity: false,
            afterRemoveLiquidity: false,
            beforeSwap: false,           // Enable only if needed
            afterSwap: false,            // Enable only if needed
            beforeDonate: false,
            afterDonate: false,
            beforeSwapReturnDelta: false,      // DANGER: NoOp attack vector
            afterSwapReturnDelta: false,       // DANGER: Can extract value
            afterAddLiquidityReturnDelta: false,
            afterRemoveLiquidityReturnDelta: false
        });
    }

    // Implement only the callbacks you enabled above
}

See references/base-hook-template.md for a complete implementation template.

Security Checklist

Before deploying any hook:

#	Check	Status
1	All hook callbacks verify msg.sender == poolManager	[ ]
2	Router allowlisting implemented if needed	[ ]
3	No unbounded loops that can cause OOG	[ ]
4	Reentrancy guards on external calls	[ ]
5	Delta accounting sums to zero	[ ]
6	Fee-on-transfer tokens handled	[ ]
7	No hardcoded addresses	[ ]
8	Slippage parameters respected	[ ]
9	No sensitive data stored on-chain	[ ]
10	Upgrade mechanisms secured (if applicable)	[ ]
11	beforeSwapReturnDelta justified if enabled	[ ]
12	Fuzz testing completed	[ ]
13	Invariant testing completed	[ ]

Gas Budget Guidelines

Hook callbacks execute inside the PoolManager's transaction context. Excessive gas consumption can make swaps revert or become economically unviable.

Gas Budgets by Callback

Callback	Target Budget	Hard Ceiling	Notes
beforeSwap	< 50,000 gas	150,000 gas	Runs on every swap; keep lean
afterSwap	< 30,000 gas	100,000 gas	Analytics/tracking only
beforeAddLiquidity	< 50,000 gas	200,000 gas	May include access control
afterAddLiquidity	< 30,000 gas	100,000 gas	Reward tracking
beforeRemoveLiquidity	< 50,000 gas	200,000 gas	Lock validation
afterRemoveLiquidity	< 30,000 gas	100,000 gas	Tracking/accounting
Callbacks with external calls	< 100,000 gas	300,000 gas	External DEX routing, oracles

Common Gas Pitfalls

1. Unbounded loops: Iterating over dynamic arrays (e.g., all active positions) can exceed block gas limits. Cap array sizes or use pagination.
2. SSTORE in hot paths: Each new storage slot costs ~20,000 gas. Prefer transient storage (tstore/tload) for data that doesn't persist beyond the transaction. Requires Solidity >= 0.8.24 with EVM target set to cancun or later.
3. External calls: Each cross-contract call adds ~2,600 gas base cost plus the callee's execution. Batch calls where possible.
4. String operations: Avoid string manipulation in callbacks; use bytes32 for identifiers.
5. Redundant reads: Cache poolManager calls — repeated getSlot0() or getLiquidity() reads cost gas each time.

Measuring Gas

# Profile a specific hook callback with Foundry
forge test --match-test test_beforeSwapGas --gas-report

# Snapshot gas usage across all tests
forge snapshot --match-contract MyHookTest

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Risk Scoring System

Calculate your hook's risk score (0-33):

Category	Points	Criteria
Permissions	0-14	Sum of enabled permission risk levels
External Calls	0-5	Number and type of external interactions
State Complexity	0-5	Amount of mutable state
Upgrade Mechanism	0-5	Proxy, admin functions, etc.
Token Handling	0-4	Non-standard token support

Audit Tier Recommendations

Score	Risk Level	Recommendation
0-5	Low	Self-audit + peer review
6-12	Medium	Professional audit recommended
13-20	High	Professional audit required
21-33	Critical	Multiple audits required

Absolute Prohibitions

Never do these things in a hook:

1. Never trust msg.sender for user identity - It's always PoolManager
2. Never enable beforeSwapReturnDelta without understanding NoOp attacks
3. Never store passwords, keys, or PII on-chain
4. Never use transfer() for ETH - Use call{value:}("")
5. Never assume token decimals - Always query the token
6. Never use block.timestamp for randomness
7. Never hardcode gas limits in calls
8. Never ignore return values from external calls
9. Never use tx.origin for authorization - It's a phishing vector; malicious contracts can relay calls with the original user's tx.origin

Pre-Deployment Audit Checklist

#	Item	Required For
1	Code review by security-focused developer	All hooks
2	Unit tests for all callbacks	All hooks
3	Fuzz testing with Foundry	All hooks
4	Invariant testing	Hooks with delta returns
5	Fork testing on mainnet	All hooks
6	Gas profiling	All hooks
7	Formal verification	Critical hooks
8	Slither/Mythril analysis	All hooks
9	External audit	Medium+ risk hooks
10	Bug bounty program	High+ risk hooks
11	Monitoring/alerting setup	All production hooks

See references/audit-checklist.md for detailed audit requirements.

Production Hook References

Learn from audited, production hooks:

Project	Description	Notable Security Features
Flaunch	Token launch platform	Multi-sig admin, timelocks
EulerSwap	Lending integration	Isolated risk per market
Zaha TWAMM	Time-weighted AMM	Gradual execution reduces MEV
Bunni	LP management	Concentrated liquidity guards

External Resources

Official Documentation

• v4-core Repository
• v4-periphery Repository
• Uniswap v4 Docs
• Hook Permissions Guide

Security Resources

• Trail of Bits Audits
• Certora v4 Analysis
• ABDK Consulting

Community

• v4-hooks-skill by @igoryuzo - Community skill that inspired this guide
• v4hooks.dev - Community hook resources

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Additional References

• Base Hook Template - Complete implementation starter
• Vulnerabilities Catalog - Common patterns and mitigations
• Audit Checklist - Detailed pre-deployment checklist