# Proposal: Create Grouped Pools on Uniswap v4 with Off-chain Attestations

Uniswap v4’s new feature *Hooks* enables much flexibility and possibility for liquidity pools. As indicated by the [whitepaper](https://github.com/Uniswap/v4-core/blob/main/whitepaper-v4-draft.pdf), Hooks are programmable contracts, which can perform customized logic within a pool execution. One can treat hooks as callback functions or soft interrupts as in the software.

PADO (https://padolabs.org) is a cryptography-based Web3 infrastructure that leverages interactive ZK and MPC techniques to bring Internet data into smart contracts. Such techniques can be roughly viewed as “*private oracles*” that retrieve users’ private data from Internet sources, compared with public oracles that feed public web data to smart contracts. In addition, the Internet data is reliable because the data authenticity is guaranteed under the ZK-based attestation pipeline.

With the powerful hooks and the powerful cryptographic techniques, we could come up with the following stories.

### KYC Attestations for Compliant and Institutional Swap

One of the significant benefits of PADO’s off-chain attestation is to enable customizable KYC. Note Aave proposed a similar [solution](https://www.coindesk.com/business/2021/12/03/aaves-push-for-institutional-defi-gets-second-kyc-provider-proposal/) called Aave Arc, to enable a KYC-compliant and institutional-grade version of the DeFi lending platform.

More specifically, with PADO’s techniques, the KYC attestations could be enabled through different sources, including but not limited to:

- Connected with multiple crypto exchanges (Binance/Coinbase/OKX…) to provide fine-grained attestations about users’ KYC levels, nationalities, ages, and other personal details. Such types of attestations can be used to identify designated user groups for compliant swaps.
- Connected with other KYC data sources from traditional KYC providers.

The general technical architecture of proposed solution is as follows. Note we omit the details of attestation contracts, as there are nice projects like [Verax](https://github.com/Consensys/verax-documentation) and [EAS](https://attest.sh) to be plugged in, which offers a public accessible layer for EVM compatible attestations.


By integrating with PADO’s KYC-related attestation capabilities, one can create an institutional pool for compliant users who have been verified to meet certain conditions from hook contracts. Note that customer privacy is well preserved, and all the sensitive information are hidden in the blockchain, due to the zero-knowledge property of the underlying protocol.

### Specific Trading Pool for Experienced CEX Users / Whales

PADO’s CEX asset proof and fee rate proof, allow anyone to identify experienced trades/users and whales. In particular, a CEX user can prove to any entity that his total asset exceeds a certain amount of USD, or that he is an experienced trader due to the specific transaction fee rate/level. In that case, we can create a hook contract to store the attestations of these professional traders.

We could enable the specific trading pool for CEX whales or experienced traders who submit their eligibility attestations to the blockchain, to be processed with specific tokenizable assets in the pool like:

- RWA tokens like US treasuries and most bonds like credit bonds
- other types of tokenizable and compliant products

Other possible features like introducing customized fee rates for the identified CEX traders. Note the corresponding architecture of this story is similar as the KYC use case.