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v4 hooks for dummies
Regular pool: Token A in -> Token B out
Pool with a hook: Token A in -> Token B out + a rulebook: ''When X happens, do Y''
A pool pauses at some moments (before and after every swap, deposit and withdrawal) and asks the rulebook what to do
The rulebook then can say for example:
- First 10 blocks, no buys over 2 ETH
- Larger trades pay larger fees
- Every buy burns 1%
The hook is attached when the pool is created and can not be changed
The token is what you buy, the hook is how it trades