Address Mining is the computational process of finding a predictable smart contract address that satisfies specific criteria before deployment. This is achieved using the CREATE2 opcode, which allows deployment to a deterministic address based on the deployer's address, a salt, and the contract's bytecode.

Usage in Uniswap v4 Hooks

In Uniswap v4, Hooks utilize address mining to determine their permissions. The specific callback functions a hook is authorized to execute (e.g., beforeSwap, afterAddLiquidity) are encoded into the leading bits of the hook contract's address. Developers must "mine" a salt that produces an address with the correct flag bits set for the permissions they require. This optimization allows the Pool Manager to verify permissions via cheap bitwise checks rather than expensive storage reads.