# Aegis DFM: Dynamic Fee Hook for Uniswap V4

**Aegis DFM** is a dynamic fee hook for **Uniswap V4** — designed to optimize capital efficiency, protect LP value, and automatically adapt to market volatility.\
It works with any Uniswap V4 pool.

***

### Why Now?

**Uniswap V4** introduced a powerful new primitive: **hooks** — customizable smart contracts that redefine how liquidity pools operate.\
This marks a turning point in how on-chain liquidity can be programmed, optimized, and monetized.

Yet most fee models today remain **static** — hardcoded, inflexible, and blind to market conditions.\
They underpay LPs, expose pools to MEV, and fail to scale fees in response to real risk.

**Aegis changes that.**\
It brings fees to life — adapting dynamically to volatility and defending liquidity when it’s most exposed.

***

### ⚠️ The Problem

* LPs are undercompensated during volatile markets
* MEV bots exploit static and predictable fees
* Protocols rely on emissions or governance to reactively change fees

***

### 🛠 The Aegis Solution

Aegis dynamically adjusts fees on every trade using a **two-part fee engine**:

* **BaseFee** – Updates daily using volatility data from a Truncated Oracle
* **SurgeFee** – Activates temporarily during extreme price spikes (“cap events”)

**Result:**

* Volatile markets → higher fees → higher LP earnings
* Stable markets → lower fees → tighter spreads

***

### 👥 Who It’s For

* **Protocols & DAOs** launching or upgrading Uniswap V4 pools
* **Liquidity Providers** seeking smarter, risk-adjusted yield
* **DeFi Developers** building on Uniswap’s hook architecture