# VannaHooks: AI Infrastructure for Uniswap V4

**Short Description**: Building on-chain AI inference infrastructure for the Arbitrum Ecosystem + creating AI-driven Uniswap V4 hooks to reduce AMM impermanent loss.

**Category**: Uniswap on Arbitrum Ecosystem + Open Contribution

## Project Overview

The Vanna Labs team is developing blockchain infrastructure to run AI/ML inference trustlessly and natively on-chain. 

Our goals for UAGP are four-fold:
1. Integrate Vanna’s trustless AI/ML inference features into an Arbitrum Orbit chain to bring the power of inference to the Arbitrum ecosystem. 
   - We want to make it super easy for developers on Arbitrum to develop intelligent applications that use AI models directly from their smart contracts powered by Vanna. 
2. Research and integrate AI models that quote dynamic fees into Uniswap V4 hooks to provably reduce impermanent loss for liquidity providers on Uniswap (Arbitrum).
3. Provide a sandbox ecosystem to allow developers to research and develop their own AI/ML-driven hooks for Uniswap V4.
4. Drive research and exploration for using AI/ML intelligent compute to benefit Uniswap (in addition to dynamic fees), this may include:
   - Using market regime models (like Hidden Markov Models) to vary fees in different market environments
   - Building AI/ML models to measure average toxicity of users’ trades as a way to vary fees using a Uniswap hook.
   - Exploring collaboration with Spectral Finance to incorporate AI-generated credit scores to reduce fees with a Uniswap hook.
   - Creating ONNX models for pricing derivatives of tokens on Uniswap.